Refinancing to commercial loan to decrease DTI ratio

[Mark Nielsen]

I have 5 properties I have deeded to an LLC (bank ok'd it), but debt in my name, I want to refinance to commercial loans to get the debt out of my name. My DTI appears high based on last year's tax returns because of a lot of expenses and lower rent amounts last year. To decrease this amount and allow me to take out a higher mortgage for a new primary residence I want to refinance to commercial 30 year mortgages for all properties. This will also allow me to pull cash out of a property I'm in the process of BRRRR'ing.

My banker I use for mortgages in my name is telling me they will still ask for a mortgage statement since my tax return shows I claimed mortgage interest deductions even if I have commerical loans, so even though the mortgage doesn't show on a credit report they will find the mortgages and it'll affect my DTI ratio.

The way around this seems to be file a separate tax return for the LLC. My tax accountant is telling me to claim the LLC as an S Corp. They tell me I'll have to pay myself a salary if it's an S Corp.

Does this sound like the right way to handle the situation? If I file my tax return for 2020 as I did last year it'll show my income going up due to higher rents, but expenses are still going to be high due to the BRRRR.