Understanding cap rates, net profit and economy (supply/demand housing, interest rates lowering increases demand, the real estate cycle, investing for cash flow vs appreciation) will all set him up for success.

Success in this industry isn't just about making a profit—it's about creating lasting value.

Note:  LLC has bought/sold $12 million over the last year with and made a profit of 650,000 (without any of the partners RE commission contributed to the profits)Going forward Partner #1 wants the RE commission to be included in the profits - less a flat fee to her.   

We knew it would sell for a great profit because of the location.

This might offer more security but also could complicate tax reporting.Taxation of Y as an S Corp:If Y is profitable, electing S Corp status could reduce self-employment taxes, but it also comes with more stringent IRS rules.

How could this create a more sustainable and profitable investment strategy?

And IF he makes a “sale” the majority of the “profit” goes to the person with the actual cash (buyer).

Your potential profit from renting is non-existent. 

How important is profit vs protecting your asset for a future use?  

I’d love to cut the cost of our rent and maybe have a profit on top.My questions are: How does the market look for House Hacks at this time?