I can't tell you whether to flip or hold, but all things being equal, I lean towards holding.

Because we are dependant, for the most part, on word of mouth recommendations it is vital that our recommendations are valid.

All things being equal, our banks will always take chances to make more money and our government has set the precedent that they will not hold the banks accountable.

I would consider other markets with equal opportunities.

Regarding the real estate market, the economy is super hot, housing is still relatively affordable and there are tons of jobs here...that equals a demand for housing.

If they are all equally qualified (areas covered, knowledge about investing, etc) I'd tell them all that I'd decide with a series of coin flips and I'd tell them that you're doing that to avoid damaging the relationship that you value so much.It's a hard situation, but if you're upfront with everybody, you should minimize the chances of hurting your friends.  

I have not taken the Realtor route yet because they take what is equal to first month rent for their fee and if I only have the renters in there for a month then I make nothing, however if you could work something out with your RE agent -take a smaller percentage- that would be ideal for your situation. 

You would be paying $250 * 26 = $6500 a year which is equal to $541.67 a month. 

One possible option is to do so via SEPP method (which stand for Substantially Equal Periodic Payments), which is a little known IRS code also referred to as Section 72(t)2.

It will be a equally divided partnership and everyone will contribute same amount of money for down payment.