There should be other options, however with an LLC and fourplex - yes, DSCR is by far most likely to be your best option unless you do the heavy lifting with local banks and credit unions (and these are increasingly not great options for this type of stuff as they move painfully slow and are under lots of regulations and restrictions)2) I haven't yet reached out local banks, but seeing the quotes from brokers makes me wondering if Banks may be better? 

Year 3 we achieved a 10% rent increase across the portfolio, but have incurred high turnover and vacancy costs.

Option C (selling) simplifies finances and provides a large lump sum (~$270K), but triggers significant capital gains taxes, potentially increasing Social Security taxation and Medicare premiums.

The increase in vacancies can be attributed to the addition of new properties to the market and higher than usual vacancy rates in older properties.https://www.socalrha.org/news/2024-vacancy-and-rental-rate-s...Note LL, location, and property all have an impact on actual vacancy.  

Do you feel, given the current state of the market, the risk is increasing in this type of investing?

Monthly rent is $1,850 and plan to increase next year.

Conventional is still the gold standard, but DSCRs are a close second for good deals. 

Improved DSCR: If a company’s DSCR has increased significantly since the original loan was taken out, it may qualify for better interest rates or terms, making refinancing advantageous.2.

By-right uses are much simpler since they don’t require additional government approval beyond standard permits.Development Standards: Once zoning is clear, factor in the regulations such as setbacks, parking requirements, density, and other local standards.

The standard response time is 6-8 months from cross-platform marketing, but bad marketing (will buy house for cash) without any personalization is 12 months or never.Maybe I should make a canned list with headers that I copy and paste to make it more clear. :)