How much “control” are you willing to give up? 

If there was no appreciation, there is no need to do a 1031 exchange.I have never been a fan of condo's as you lose some control over the investment - You have no control over the monthly maintenance fees, you may not have control over who is on the board, you have no control over special assessments.I wish the investments turn out well for you!

They also are thinking of getting a different PM to manage it after they can gain back control but would like advice on doing so.

Keep in mind rent control is 1 thing, its a laws for existing tenants but some city's like Newark are so strict that you must get approval for what rent can be even after a tenant moves out and new ones move in. 

Since you retain control of your money, how does one consistently maintain 30-50% cash on cash return? 

Based on what you wrote, it sounds like your project partner lost control and got pushed over by the contractors.

He is knowledgeable but he has no control over the GP.

SFHs are largely exempt from many regulations such as rent control.

Also control the thermostats so the tenants don't jack up the heat in the winter giving you a massive bill.

You have more control of your time when working with sellers as opposed to buyers.