This leads me to the sheriffs auction...the problem I've had is there have been a few good houses go up to be auctioned, then a week or so prior to the in person auction the house will come off the auction site and show as "pending" on zillow.

I would make certain the seller PROPERLY fixes the leak PRIOR to closing. 

Retained Earnings that doesn't roll from prior year.

Doing a BRRR with no prior REI experience is a bit like trying to surf a 50 foot wave before even learning to swim--the chances of success are low, and the chances of disaster are high. 

Mind that this tenant has only moved in for 10 days and has sent us numerous emails, texts, about problems in the property. 0) Day 3: Unit was professionally cleaned by a cleaning crew 2 weeks prior to move in.

Prior to the 9/11 floods (in Chicago), we had always used LVP.

I have no doubt that the mouse got into the camping gear of the prior guests and made an escape into my VR. 

Sure, some modern building methods are far superior to what was used in the past, but lots of building methods used today aren't nearly as robust as in prior generations (ask an experienced GC).....Additionally, a new house is still in its "growing pains" phase, and a lot of serious problems can emerge in the first few years of ownership--e.g.; foundation/structural settling, improper water diversion systems creating rot, etc.

Not many people want to live in such a small unit at that rent point for long (prior to changing PMs the units averaged nearly $7.5K/month rent each for little 2 BR units (maybe 600')). 

I was planning on adjusting my bid but it sounds like it can be a negotiating point prior to closing.