Possible mass exodus 2.0 but is purely speculation.It’s good to reach out and get others perspectives but don’t get caught in analysis paralysis, your first deal doesn’t have to be a homerun. 

That crack in the basement wall or the maintenance records etc....I would also review what other things you have been told and what was disclosed and look at it with fresh eyes.  

From a tax perspective, you won't have as many advantages as you would as a US citizen, or other foreigners, for that matter, but I've been told that the returns still make the investment worthwhile.

To put this into perspective, this was a $420/month increase x 4 months!

From a lending perspective, anything property with more than 4 residential units OR has non-residential uses (office, retail, mixed use, etc) is commercial.  

I am wondering from a buyers perspective, it is better to have higher buying price or higher interest?

It sounds like there's a good scope of upside but thinking from a lender perspective and dealing with many investors, I'd recommend you need to work your numbers backwards and see what your upside looks like, based on realistic income and expenses and then go from there. 

And if you have a totally different perspective, I would love to hear that as well. 

Being a young family fresh out of college, our student loans have strained our credit to the point where traditional lending is not an option.

Upstairs was recently updated, downstairs also looks decent, needs fresh coat of paint.