Not every dollar made must be spent on business endeavor, and while it's not a bad idea to upgrade your primary residence in exchange for added equity, there are probably other things you can do with that 30k that may yield a higher return. 

Therefore I am planning on either selling the property outright and taking the tax hit or doing a 1031 exchange for multiple properties in a more desirable market such as Dallas, TX or Atlanta, GA.

-Yes you'll make money, in exchange for some level of effort.

And they can do the same on theirs.If the property is actually owned by a partnership that files a tax return then the partnership could still do an exchange and purchase properties that each partner would like. 

Are people paying way above appraised value and getting 7 caps in exchange?

I suppose I cannot keep them from exchanging contact info to cut me out of the middle in the future?

I live across the lake from you and would love to meet up and exchange knowledge and talk about different ideas with you

Licensing Sec. 08.88.161 License Required.Unless licensed as a real estate broker, associate real estate broker, or real estate salesperson in this state, a person may not, except as otherwise provided in this chapter, (1) sell, exchange, rent, lease, auction, or purchase real estate I know that it’s not illegal for a non-licensed person to buy their own home.

Over time, future appreciation improves the profit on the property your tenants are buying for you and that profit is taxed at a favorable long term capital gains tax rate (think really great IRR) or the taxes can be deferred indefinitely with a 1031 exchange (why pay taxes if you don't have to).Tax benefits and appreciation are really just the icing on the cake; cash flow is the only real reason to own rental property.  

We are 1031 exchanging this property and are in the process of identifying properties in the Orlando area.