First time fix and flip opportunity in Stamford Connecticut - Total Gut Renovation

[Beau Wollens]

Hey Everyone,

I am an extremely novice real estate investor looking for some advice on an opportunity I have on the table. I have the option to buy a 1,300-sqft 3-bed, 1.5-bath house in South End neighborhood of Stamford, CT, from a family member before it goes on the market. The past tenant was a hoarder and the apartment has not been lived in or touched since 1999 (26 years)! 

I have been told by a contractor that the foundation of the building is intact, so it does not need to be torn down but requires a "gut renovation down to the studs." After some research online, I am reading that the cost per square foot on a gut renovation of this nature in Stamford CT is anywhere from $150-$350, which is ultimately not very helpful, because at $150 per sq ft, this is a very appealing project with a total profit of ~$175K (46% ROI) and at $350 per sq ft, it very much isn't, because it would be a net loss of 83K (haha).

QUESTIONS:

What can I do refine my estimate a bit given that I am not allowed to a formal inspection on the property? 

Can anyone share a breakdown or budget for a similar project in a similar area? What were the biggest line items? How does this number breakdown? 

What are the largest pitfalls one may run into that turn this from a 150 to 350 ordeal? Is this price differential largely a matter of how high-end you make the finishes? Or is it other factors? 

Does the cost per sqft account for electric and plumbing? 

If you are familiar with this area, any further recommendations or resources you are willing to provide, I am super grateful. 

Here are the numbers I put together. Feel free to share any thoughts you have here as well.

[Aaron Ram]

@Beau Wollens A bit late to reply, but please tell me you bought this deal. A 3BR, 1.5BA in the South End—just the land alone is worth more than $175K. You could have picked it up, flipped it right back on the market for $300K without lifting a finger, or done a basic builder-grade renovation and sold it for $625K+.

Also, most homes in the South End fall under RMF or R6 multifamily zoning. If the lot is at or near 6,000 sq. ft., there’s a strong chance you could legally convert to a two-family. Right now, the average two-family sale in Stamford is $818K—and that’s not even for a newly finished one.

Good luck if this opportunity is still around. Feel free to reach out if I can help in any way.