They're not stuck as in "there are no other options", they're stuck as in "there are cheaper, crappier options but we'd have to pack up our entire lives and deal with the other expenses/headaches that come with moving so I guess we might as well just suffer with the increase". 

20-25% I guess you have your reasons for the down payment discrepancy between citizens and non-citizens, haha, but it doesn't sit too well with me.

I guess I was looking a little too deep into it. 

But I'm guessing maybe your credit is too low for that?  

I guess we just picked a foul apple... 

Most important thing… if you’re here you’re most likely an investor that’s willing to do the work instead of just speculating and guessing.

Based on the rents, I would guess the $1350 house is in a C+ or maybe B- area, and the $950 is in a C- area.What neighborhoods or zip codes are these in?

I haven't received that yet.Well I guess irregardless of the unit being heated by electric or gas you still need to make sure the electric bill is being paid.

I have more money in savings however, I said 20k because I guess it feels scary to put down more when I have never done this before.

My guess is that if it is a STR, they probably don't want them either and it would be more work for them to take them.Generally speaking, I like to put my own touch on everything.