We are still positive on cash flow, about $400 a month combined. 

Which ever choice you make it seems that you are in a good position!

The offer is $1M higher than the capital account we would get with the developer, although once up and full we would be in a better position than selling in our equity and annual income. 

When a investment income property can not generate positive cash flow with a hypothetical 100% financing it will never generate cash flow on it's own.

It is incredibly simple to get and maintain a RE license - the barrier to entry is very, very, very, seriously small. 

I’m in a similar position up the road in Columbia.

YOU NEVER KNOW WHAT POSITION THE PERSON IS IN AND WHAT THEY MAY ACCEPT.

the issue your client may run into is that most hard money lendes will not / do not take anything but first position loans, so if he is trying to use hard money for a bridge or down payment he may run into trouble. 

The newer properties are easier to maintain but the old ones cash flow better. 

Needless to say that anyone that had purchased in the last 5 years has done well as long as they were in areas that moved up with appreciating rents and values.Unfortunately, not all of America had done that.I still have a friend of mine that bought in Bristol, CT that have not seen much value or rent appreciation although it had maintained it's consistency.The problem is that he totally missed the boat on the appreciating areas which was where he lived.Unfortunately, investing in non-appreciating areas but living and not owning in the appreciating area is a formula that spelled disaster for him.