Should we consider refinancing in this condition?

[Marita Jojo]

1st LLC - 12 Properties

7 properties - Loan with Bank A

5 Properties - Bank B refused refinancing as overall tax return shows loss last year due to properties under construction

2nd LLC - 7 Properties

7 Properties - No loans - Bank B giving max refinancing of $300k at 6.5% for 2 properties. The 2 properties are worth - $275k + $375k = $600k

Should I take the money out of the properties or not in 2nd LLC?

How to handle denial for 1st LLC? Is it common for all banks?