The property price and rents you describe sound good if the units are in fairly good shape (i.e. rentable), and if the location is decent.It's great that you have a background in the trades, it's really helpful to have those skills to apply to a fixer-upper.

Defaulted loan was a VA loan originated in 2016, appears to be in decent shape but will require minor updates (paint, locks, etc.) and needs a refrigerator.

The property is already in great shape and doesn't require much or any improvement (which takes away the execution risk of doing that).

I suspect there could be a problem here, since the USRDA probably put the lien on it (and maybe also a value for the lien) before they moved out when it was in better shape. 

It is in pretty good shape and do not want to ruin it. 

I feel like 10k is enough to get it in beautiful shape..if I do the work myself.

I have never been through that process, and, although my properties are all in exceptionally good shape, I am worried about the disruption to my business that might ensue if I am forced to go through this process.  

They don't scatter around **** and hope to find gold, they find a trend and then pounce it.

If market conditions in San Francisco persist for the next 30 years, price trend (ceteris parisbus) would continue in the general direction it has been the last few decades. 

This particular building is in decent shape and has been maintained well enough, though it's had very little capital improvements recently (potential for increased rents with some rehabbing, but not going into that here...)