Full gut renovation process NYC

[Stephen Macknik]

In NYC one must do a full gut renovation on a stabilized property (once it's vacated) as part of the process to achieve destabilization, and create free market rental units. I'm in the market to purchase a multifamily building, and to make it BRRRR will require me to get a stabilized property, rehab it, destabilize it, and then refinance. A BRDRRR, if you will (pronounced "birder"). The only way I can figure out how to make the math work. The main problem that I'm having is that renovation costs are coming back at more than the price of the building, which makes the whole process more expensive than building a new build. I must be doing something wrong. Does anybody know contractors in NYC that don't charge an arm/leg?