SFH LLC investment 5yr IO +25 year am or 30 yr fixed

[Vishall Aeron]

Hi everyone, i am trying to better understand whats better for me between two lenders ive been quoted for an asset based portfolio loan.

Scenario: 4 sfh rental homes in one LLC with fannie freddie loans. The plan is to refi into a portfolio loan to free up personal credit. All are cash flowing well, and the plan is long term hold.

LLC FMV: 1.68m. Cash out 75% or 1.26m. Current balance 1.04m

Option 1: 1.2pt 4.5% IO for 5 years, then 25 year am. DSCR is very healthy, 5 years gives me enough time to catch up on rising rents before am kicks in

Option 2: 1.75pt 4% 30 year fixed. Lender will be okay with DSCR a tad above 1.0. 5 years of pay down is 120k which is nice. PI is $1,300 a month more on this.

Im okay with a nearly breakeven on dscr in scenario 2. Capital will be used to purchase more property. Long term hold is the strategy for this LLC. I will refi down the line but not sure how soon as i dont like paying for refis.

What in your opinion is better for a long term hold strategy in a market where rents are slated to go up (PHX MSA)