Directly across the street you have Panda Express, Popeyes and a pawn shop/jewelry store must I say anymore? 

The DU provides information on Credit, liabilities and income and it can be possible that one offer will be chosen over another because of a FICO store or income even though it gives an approval and that is a very thin line for discrimination. 

A Heloc is a open end mortgage like a credit card so its an additional trade line on credit, cannto never be used as an Asset, PITI reserve, and its a DTI killer in most cases.A heloc is also usually set up on a shorter term versus a mortgage, carries a Higher interest rate, and most carry a interest only with a prepayment penalty.

You can couple that news with the news out of China today that they have decided to cut their interest rate, lower Bank Reserves, (banks can lend more money) and make it easier for people to buy houses and they are also actively pumping money into their stock market which is to say we were going to have the massive inflation going forward.

Following up, of the amount that I decide to invest from my savings, how much should go towards down payment and how much should be reserved for repairs.

Got to shelf the reservations for all units until we can fix this.

Am now working with some creative financing to solidify the reserves for my newest purchase.

So make sure you have massive reserves. 

Trusting your insurance provider is like trusting corner store sushi.

But you do have to store it and move it.