I'd much prefer to put $60K on a down payment and closing costs so I have $50K to fix it up.So a couple of questions: 1) Am I mistaken in thinking those kind of lower down payment products are out there for regular folks like us? 

They claim a 3/2 can rent for $2,300.

Whether your statements are true or false, whether we have evidence to support or deny a claim, it will never be something blasted on the internet.

I used to work with a marketing company who claimed they could get me leads of properties already listed STR. 

I would imagine the best actions would be to immediately fire the management company, pass the keys onto a new one, sue the old one in small claims court for the listed damages.

What data supports your claim?

As best as I can tell on both sites, the algorithm looks something like this:Cheapest price>least restrictions (cancellation, # of days minimum, etc)>Premier/Super host>Review Scores>Most discounts (weekly, last minute, etc)>Regular revisions

Cost Overruns: After the final payment, the contractor claimed there were additional costs of $60K.

Many of these "gurus" claim you buy Class D properties and through the "miracle" of S8 rents - make them cashflow.Rarely happens!

He probably could take you to small claims court and win.