Chinese Drywall - 3/2.5 Townhome in Cooper City, FL - potential good buy? Or run?

[Chris Adams]

Title pretty much sums it up. 

My wife and I are expecting our first child soon and we were looking to upgrade from our 2/1 condo in Wilton Manors, FL and purchase a 3/2.5+ TH/SFH in Broward County, FL. Homes in the two cities we're looking into (Pembroke Pines & Cooper City) are still well into $400K+ category, but there's this home that's up for sale that's listed for in a neighborhood that my wife and I like. But as the title says, it has CDW.

I was wondering what an average CDW full gut would end up costing. Not sure if it needs a full gut, but I want to run the numbers as if it will be worth the cost. FYI, it is a 2 story 1,400 sqft townhome. New ordinances state plumbing and electrical does not have to be replaced, just outlets, switches, and fixtures. 

$5 per sqft for demo and new drywall (including trim)
$20K bathrooms (2; A-- level fancy)
$15K for cabinetry/countertops kitchen (quartz, farm sink, etc)
$1K for outlets/fixtures/switches
$5k for paint
Flooring & Ceiling don't need to be replaced and not changing floor plan
$500 City Code Permiting/Inspections

With acquisition, closing costs, and if my estimates are true, it would still be worth the cost as it would leave about $50K of a buffer after renovations from current comps. And with the fact that I would have purchased the property at a lower acquisition cost, my taxes would be lowered further, thus allowing us to save up faster towards property #3 after all is said and done. 

Am I over/underestimating costs? Or completely missing something? Is ~$55K ($48K + 10% stupid tax) renovation seem an accurate estimate? 

Or, should I just completely avoid the whole project?

Thanks in advance.