Oversimplifying it just a bit, the investor profits from:- a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period- the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option- the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investorClear as mud?

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? 

What about Not-for-profit HOA's.Anyone heard of this?

Without a firm base and working familiarity with these three areas the investor will not have the knowledge to analyze, negotiate and close advantageous real estate transactions. 2- Experience - the first few deals are likely to be smaller, harder, with more “surprises” and not as profitable as the investor imagined.

When making offers I want to utilize the standard 70%-ARV-Profit formula.

The reason I ask is at that rent point there is no profit on a sustained hold.   

The main issue is your exit is capped so if your costs go up, your profit goes down.

Profits during the partnership can be shared based on the agreed equity split, with income and expenses reported via K-1 forms. 

Yearly increasing costs will, in time, eat up any profit they have per unit.

Because my clientele is so profit-focused, I get daily questions about current real estate market trends.