What is that delta?

A quick check of a recent offering shows a delta of around $50K for RETA pricing on a 2/2 condo in Mexico. 

Average apartment rent of $1070 to national $1470 (25% delta to the downside, in one of the highest growth environments in the nation)3.

Here's what the quote covers:- Conversion of 2 bedroom, 1 bath main house to 3 bedroom, 2 bath (~1040 sf footprint)- Demolition of existing walls (existing dining room wall, wall between kitchen and living, bathroom closet)- Finished Shell (Reframing opening to living room and kitchen, shifting openings for bathroom/bedroom, new walls at bathroom and dining, level - Replace all aluminum windows with fiberglass windows and screens- Upsizing plumbing, and relocating fixture locations as necessary- Upgrading electrical panels- Assume heat pump and ductless mini-split for heating and cooling- An allowance for kitchen appliances including combination range, hood, dishwasher, microwave, refrigerator, and washer/dryer- An allowance for mid-grade plumbing and lighting fixtures (Delta, Kohler, or equivalent)- Mid-grade plumbing and lighting fixtures (Delta, Kohler, or equivalent)- Ikea cabinets or equivalent with solid surface countertops, includes island- Assume solar system to be installed on the house including battery storageFor the garage ADU, the garage would need to be demoed and rebuilt, but we would benefit from building within the setback since the garage is on the property lines.

@Eric LunsfordAs mentioned it’s taxed at ordinary income - but there are debt funds that do private lending that can provide investors a 1099-DIV vs 1099-INT which is a considerable savings net taxes - it’s about 2pt delta - meaning 10% from debt fund is better than 12% taxed as interest (and a lot less work)

I also use Delta faucets in bathrooms and kitchens.

The flipper sold for a delta of over twice his declared expenses and I suspect made significant money on the his ADU addition (but was not hands off). 

well lumber is down  so that could help.. but if your just getting a lump from your GC I guess that is his delta to capture. 

To me the $1500-$4000 a year delta between a 12% and up to 20% is not worth the risk of potentially losing a significant portion of my capital.

Investing in one asset class and 3 syndicators is like investing in delta, United and American AirlinesIf that asset class has a funk, then so do you.This is a personal preference for you - but owning real estate - especially a str is like running a new business and is not passive