Keeping up with the return delta their competition was offering.2. to keep up they had to take on not so great short term or bridge debt so it juiced their out of the box return numbers.3.

Next, what is the cost of the renovation vs higher rent delta? 

If he is only having hard money for a few months the delta between 7 and 10-12% is not that much.There are many other reasons, but those two I see are the most common

(BTW, that agreed on price should be the main data point in value).Even in a commercial appraisal, applying a cap rate to determine value, +- a quarter percent, which is a perfectly reasonable delta amount, will swing those values dramatically.Like BPOs, appraisals also use terrible comps many times, especially when they are doing so blind with no set sales price set to achieve.

For example lets say you are gonna make $50k on this and the delta on taxes might be $7500 which that price if it is November 2025 when you have the delta in taxes recouped may not be worth it if home values are decreasing. 

Certain states do not allow your primary to be foreclosed upon for other judgments (for example I believe florida is one of those states) - they can still get a judgement against you for the delta though.But yes this is a concern that every person should realize, which is also why you see many of us here on BP telling people to make sure they have adequate down payment and reserves before they get into something they have never done before.

Also, while Kohler is one US company (and 40 miles up the road) that's been into luxury bath for years, now Delta, Moen, etc are jumping in but especially in this area is not going to be what they're looking for, its either Kohler or a Euro brand and I think I'm going with Grohe.

The higher the delta between your cost to operate and your ability to generate income, the wealthier you will be.

Builders typically are NOT long term buy and hold investors.they build they sell they take their profit and do another new build, rinse and repeat.There’s still a delta between seller ask and buyer expectations on existing property which makes sense.

Money stored in houses only makes appreciation delta which may be low, but it's probably not zero.