I think as long your HOA and Lease Rent is not eating all your expected profit, then it may not be a bad deal, especially if you can turn it into a STR, you can definitely maximize the returns.

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.   

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.

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

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?