This would imply that any terms and conditions of the existing leases and TAW agreements are in place after the sale until a new rental agreement is signed (or the tenant moves out).Is this correct?

You need to know not only what things are worth in good condition (ARV or Market Value) but what level of finishes the market expects to get those prices.

As long as the sold houses are in similar condition to what yours is going to look like you can get the average of the sold houses and apply it to your house.As far as the repairs, you would need to list the repairs and find out what it costs to do those repairs.

Depending on your strategy and the overall condition of the home you may qualify for traditional financing if you find the right place.

Generally, yes.....read the auction terms and check the condition of the property to see if it will qualify.

Here's a list of what's included with this home:New drywall & insulationAsbestos abatementNew copper plumbingNew air conditioning, and FurnaceNew recessed lighting throughout New bathrooms (two bathrooms)New kitchen cabinetsTankless water heaterNew garage door New roofHard-wood flooring ceramic tileNew granite kitchen cabinetsUpdated Fireplace in the living roomNew interior and exterior paintI'm no expert but this seems extremely high.

After vetting the pets(saw their current living conditions, met the pets, etc), I charged them only $50/pet.

Asking price was $79,990 for a ~1600 sq feet single family two storey that would easily go for 175000 in this neighborhood in good condition.

Do I have to just go by what the turnkey operator presents as the home's value and condition? 

You need somebody in Austin to be your eyes to describe condition of properties and neighborhoods, provide comparable sales and rental analysis.More importantly, you should put your thinking cap on and strategize a bit.