SFH Financing and Portfolio Loans

[Brian Mowcomber]

Long time listener and reader here.  Please provide some detailed information if you have it!!

I have 2, 2-flats financed conventionally on Fannie/Freddie qualified 30 year loans. At the beginning of the year I opened an LLC for my real estate. After an in depth search of local banks I found one who holds investment property loans in house, aka portfolio lender with a 5.1% 15yr fixed product! Catch is they require me as a personal guaranty on the loan.

I am looking at refinancing these loans into the LLC to reduce my DTI for a single family residence purchase. Although my properties cash flow with 75% occupancy, I still have a 1.35% DCR. They are affecting my DTI personally. I've read on Biggerpockets they should actually lower my DTI when performing this well, I am finding this isn't the case when I purchased my second property. The higher DTI is blocking me from buying a single family home (SFH).

Question: Is there any advantage to refinancing the properties into the LLC from a DTI perspective? How can I reduce my DTI for a SFH purchase?