Basically your INITIAL out of pocket is $0.....but then you would need to come up with the remaining amounts out of your own pocket (and don't forget to factor in closing costs).  

That will be a large factor.

That should probably be the deciding factor.

First the positives; It's cheap, Temple is growing, to the south you have Austin, and to the North Waco with the Chip and Johanna factor.

San Francisco is short of homes by a factor 7 when compared to more stable markets.

From there factor in mortgage, taxes and any other expenses.

and a myriad of other factors.

What factors am I missing from the assessment described here?

I think finishing a basement is an easy value add (assuming all the other factors make sense, location, ARV, etc. ) However, if you bought the new build at the price of a similar property with a basement already finished... not sure the equity will be there unless the appreciation/inflation ride goes on...

In fact, passive income has generally a better tax treatment than active income.Flip properties are considered the sale of "inventory" so you are a dealer of property.