So, the actual increase to market rent will be much lower.

All lenders have strengths and weaknesses, staying close to them is the only way to learn what each of those are.

It will give you a lower interest rate on both properties because you bought them as owner occupants, and it will require less down payment to get into. 

There a handful that can do lower  than 620 at 50% LTV, however the rate will be very high My current score is around 670-680.

You will hear about west side vs east side, while what is told is true, what is not mentioned is lower class areas are block by block. 

I know I already mentioned this, but @Mordy Chaimovitz...If you can get by with lower cash flow and invest for the long-term generational wealth (aka appreciation) in nice neighborhoods, that is the way to go, but it's tough to get by at times -- at least it is for me.Just know everyone's situation is different, and you should do what is best for your specific circumstances!

Not sure how close you are to the partner but you may want to work with someone else for these kinds of rehab projects in the future. 

., Smyrna, Decatur, Marietta), new construction or turnkey rentals for lower maintenance, or small multifamily properties for stability.

You are correct in your assumption that it will impact how low they can go on the down payment, though, b/c commissions will need to be paid out of closing costs. 

New Britain is where you are going to get the best ROI like you mentioned and this is because as a whole there are more areas within the city where qualified tenants are looking to live and the purchase prices are lower while still maintaining competitive rents.