@David London, Usually when I see numbers way up it’s either a redevelopment play or a desperate 1031 exchange. 

You didn’t say which state you are moving to so no one can give you a precise answer on this.

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?

First, ask them what they mean precisely.

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