Hi, I've been to Osaka more than 30 times. There are affordable
and very good accomodation in Osaka (especially the apartments
which have been converted to hotels), but they only speak Japanese,
and only the locals know where to find them....so unfortunately,
you'll need a local friend there.
I used to stay at Hotel Live Artex, where each room is an apartment
- kitchenette, living room, bedroom, big big bathroom, etc. Its
considered dirt cheap, for Japan. But be warned that although they
have a website in English, no one speaks English there and its VERY
hard to find (no prominent signs, etc).
http://www.live-artex.co.jp
(I also don't speak Japanese lah.....but my ex was a Japanese from
Osaka who spoke English, so its OK).
If you don't speak Japanese and its your virgin trip there.....best
is to go through a travel agent here and get their recommendations,
including directions. Whatever you do, don't take a taxi in Japan
hor.....you have been warned. 
