But, the one factor that is missing from the numbers is the risk involved when using leverage.

With the 35 day model, there are a variety of factors that come into play.

Mind changer is a factor, if you pay me 5 times to paint the same wall 5 times, just because you don't like the color, that's a no no for me.

Paying off debt may not be the best choice, depending on other factors like income, FICO, and credit/debt ratio.  

The members of an LLC are issued K-1 Form and have to pay taxes on all profits as though it were income, which could expose the owners to high employment taxes.

You also need to make absolutely sure that your rehab costs are correct and there are no zoning ordinances issues or code violations all of which would need to be factored in.

We have to accept a biased opinion of value in order to base all other factors.  

The space seems crowded and the common factor is pretty high account fees.  

And that rent control may be a factor in the near future. 

With the exception of skiing.Places like SF and NYC definitely win when factoring in motivated/interesting people per capita though :P  I tried really hard to not like it, but my 5 years here have been a blast, both personally and professionally.