However, I know you could get 10 acres and a 3/2 house here in New Hampshire for $350,000 if you spent some time looking and were willing to move across the country.

Each of you are putting in half of the down payment, but I'd consider agreeing to a 60/40 split of the net income in favor of them. 

What language you recommend because in North Carolina it has clause that says seller has to agree 

Have a long talk with your father and make sure you can both agree on a plan of action.

Because if they held on to their properties, they would be almost 2/3 of the way done with their mortgage and values have bounced back and likely exceed in most parts of the country.

If you sell without a 1031 then CA "claws back the tax on the appreciation they think they are due.But the 1031 exchange can be used to go into any other type of real estate anywhere else in the country. 

I have a couple of similar properties and yes, they are hard to comp, whether for Rentals or For Sales.But you can't do the multi-year leases, that will kill you....as you know obviously.I agree with @Melanie P., raise the rent to $4k, or whatever it takes, to make the numbers work for you.

Rents have gone up quite a bit across south Florida, but I agree with Ray that Broward and Palm Beach are going to cash flow better in general. 

It's landlord friendly and still relatively affordable compared to other hot markets around the country.

I too agree that many markets in the midwest have provided a lower barrier to entry given the higher prices inside of the metropolitan areas.