I believe that the Federal Reserve is going to cut rates by 25-50 bps at it's September meeting (no emergency cut), but that 30-year fixed rate mortgage rates will rise to upper 6s low 7s around the same time, and Commercial borrowing rates, including for multifamily, will increase as well. 

Typically real estate is long term, has tax write off advantages and you can borrow money tax free to invest in other opportunities.

The rental income is approximately $4,000 per month, but every bank I’ve spoken to only allows me to borrow up to $300,000 against the property.

I've read everywhere that they do not.Can someone explain which one is the correct choice and if any extra taxes are involved if they need to be on the LLC?

Tagging people who have no choice but to believe there is a light at the end of the tunnel is not persuasive.

But for an OOS investor one consideration is access to support, first of all PM & contractors, and you have more choices in the much larger Milwaukee metro area than in a smaller submarket.

You’ve made a great choice diving into real estate investing—it can truly be life-changing.

I suspect you spoke to bank employees who weren’t in their commercial lending division and didn’t understand your borrowing request. 

Borrowing that money @ 8% is a $20,000/year cost.

You do not own the building, so no choice but to have the inspection.