Is this a viable strategy?

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Hi Everyone - I'm hoping to start a bit of a theoretical discussion and I'm not sure how to best describe my thought process but here it goes!

I'm looking into the fix and flip model and am trying to find a path that will work for me.  Here in Boise, there are a lot of people buying (or trying to buy) small old homes for cheap and then doing a big make-over and reselling them.  In these neighborhoods, the homes can sell for a high price per SF but because the homes are small they are still relatively affordable.  These submarkets are overheated.

I happen to live in a very nice area of town (probably one of the nicest) with lots of new construction of very high-end homes.  I'm biased but our city is one of the most desirable areas to live for families with good schools, etc.  Over the past 15-20 years it has turned into a boom of new home construction with homes right now selling in the $300,000 to over $1MM range.  

In Eagle, there is an "old" core of town -- 1970's through early 1990's product, smaller homes but on decent sized lots.  These homes are well located but the neighborhood doesn't have the amenities of a modern subdivision.  They do have nearby parks and are walking distance to the historic downtown.  

For some reason these homes sell for quite a bit less than the rest of Eagle.  $115 to $125 per sf (on a smaller SF) vs. $150-$175 per sf on twice the square footage.

These homes aren't run down, they just weren't built for the buyers currently looking in Eagle.  I am thinking that there is an opportunity to take a dated 1975 home and spend some money to modernize it -- open floor plan, new kitchen and master bath, etc.  I would think that it should then sell for a price more in-line with the rest of Eagle BUT I don't see any comps to support this.  Does anyone have any advice on whether this is an opportunity or is there likely a very good reason that this pocket of Eagle will always be significantly less than the newer areas?