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

Before entering this heavily competitive space, I am in search of advise from anyone willing to expose what they may have done different starting out, or what processes have proven to be a productive source of business.

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

and a myriad of other factors.

The buyer SHOULD have gotten inspections which would uncover dry rot by poking into exposed wood, other than smelling musty or seeing black or green scum on the walls a mold inspection is more detailed and samples go to a certified lab. 

Now that it has been exposed to auction it is a little more complicated. 

---Here in Michigan the PMC company is required to have its own real estate brokers license2) When did your broker approve you exposing their broker license to your property management liability?

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...

(I expect to factor in this cost when running my numbers.)