Condos will have less maintenance/cap ex costs; more correctly some of the maintenance/cap ex is in the condo HOA fees.Suggestions:Learn the 50% rule. 

We plan on already running all the dedicated gas lines, water, sewer and capping them as part of the first project. 

That sets you up for more risk, as you have to bank on all buildings renting out for 12 nights a year to just pay the mortgage (at the owner’s current loan amount), not factoring the insurance, taxes, cap ex, property manager, etc.

You each have a cap and ball pistol. 

What are the average expectations on cash flow and cap rates for the current market?

I responded to your CAPs below in italics.So much great info here--thank you!

(anticipating the backlash with the #Detroit flag)A Markets: sub 1% deals $250k-$1m price point, 6% cap, not a lot of cash flow but not really the strategy in these markets anyways.B Markets: 1%-1.3% deals $115-$200k, decent cash flow, beating $100/door rule and can get up about $200-$300/door.

Do a partial exchange with the properties with the largest cap gains and sell some others and pay the taxes.

And finally, I believe they are chasing deals and overpaying dramatically (see the low Cap rates they are buying at - very difficult to overcome overpaying for an asset).

We bought for 240k and now with a 10 cap rate it is worth over 750k 3 months later.