I've had my share of low income experiences to never ever rent in an area where I have to collect my rent with a baseball bat unless a unique section 8 opportunity. 

I finally finished renovating the last unit and am currently at full capacity with all units having been renovated within the last three years.

I currently live in NJ so I’m not sure if I’m getting the best for my buck here. 

If you are unfamiliar send the title insurance to the current title company and ask them to file the claim on your behalf.

But back to your question, which really isn't around section 8 at all, but seems to be based on where can you find the highest rent to purchase price areas: they will be in the high crime, low value areas of any market.  

My current W-2 and rental income(4 duplexes in my name) have me at about 35%DTI, I am about to add another multi-fam property and it would bump my DTI to 46% even though it cash flows $2000...Do people simply start buying in LLCs(DSCR) at this point for this reason? 

Any company that won't show me pricing is automatically very low on my list.

Long story short, no, no one is currently enforcing the 2 property limit.

Maybe ask the seller's agent who has the current insurance is one option. 

We recently paid off our debts, and assuming no mortgage, we currently save about 70% of our post-tax income, around $10-12k a month.Would you still highly suggest getting a 203k loan, or would you recommend getting a standard mortgage loan from a lender?