Your individual circumstance may require some other action, and you should consult with your CPA or tax advisor before doing anything. 

due to yearly contribution is only $5500/individual & $11000/couple.  

When someone goes to appraise a commercial property, they take the NOI (which you can control, but lets assume its constant) and then divide that by the market cap rate to reach a market value.Yes, you can achieve different individual cap rates based on risk profiles of the property, how motivated the buyer/seller is etc, but in general, the market sets the cap rate.  

I see there being 2 options if we purchase through an LLC:1) Refi through a portfolio loan at an adjustable rate.  2) Deed to an individual member of the LLC, refinance at fixed rate financing through conventional loan, then deed back to the LLC. 

Only the owner of a property, a licensed agent, or the actual individual or entity who has a property under contract to purchase can market it.  

I am interested in starting to invest in real estate, but I'm wondering what the benefits/detriments are to purchasing under an LLC vs. purchasing as an individual.

My initial strategy was to buy a rental, rent out the rooms individually (separate lease per room), save as much as possible, buy another rental once I've saved enough, then continue the cycle until I've replaced my salary with cash-flow to quit my 9-5 and raise my kids.The problem is, my debt-to-income ratio is now about 40% and can only qualify for about $400/month more in additional loan/debt payments.

As I think about my business and after marketing is consistent and at maximum scale for one individual to handle I need to replace me.  

I would have anywhere from 1 to 3 individuals contributing to the project.

Hope that helps.How do you or do ypubrent individual rooms?