This outlook is reflected in the prices resulting in poor initial cash flow but historically great long term cash flow. 

The 1% "rule" is not a rule, it was a simple guideline that was supposed to help do a quick initial vetting of a deal.

My role will be running day to day operations/ property management/ taking calls and running all activities after the rehab.Our initial thoughts are 1/3 equity.Quick Rental details: we purchased the home for 30k.

Get a handful together to start, so you have some cash to initiate the class action.

My developer client successfully defended the initial challenges and settled on this having PE rights, so he shifted the site plan to avoid the issue.

I never go off of a flat percentage on anything, I analyze the costs to get to a specific return I target and analyze the risk that is involved. 70% may be an initial metric to see if it is even worth pursuing, but every deal should be evaluated independently based on costs, time and risk involved.

The cash flow won't be that high on these properties initially, but we are not planning on keeping them long term.

Initially, focus on building relationships with sellers rather than pushing for immediate deals.

If you kept the property, and accumulated the CF/yr, it would take you 25 years to get that same equity that's sitting, frozen in your property.Also, if you cashed out and used that same equity as a DP on different RE, at 20% DP, that equity would buy you $2M in PV, not just $700k,...and, I'd be willing to bet, you could find new RE that would have a yearly CF well over $20k/year.On top of that (remembering my initial statement above), any appreciation applied would be applied to $2M, not just $700k. 

Having a vision for future projects like the ones you mentioned are great, but learning the ABCs of RE with a small investment (initial down payment - since you only need 3.5%-5% down on a primary) is the best way to sharpen your skills.