I have run into similar situations and I always am careful to never work for someone like that again.  

We would love some advice from those who have dealt with a similar situation in the past.

We are in a unique situation and would love some input.

To fast forward, essentially the husband had work across many different states/projects and their circumstances changed causing them to move back to their hometown within 3.5 months of starting their 1 year lease.The signed lease was very tight (no PM, just realtor, great neighborhood/friends and us) and covered us for many situations but I do want to get some clarification or advice on best course of action for the following:(please note this info is just from my googling/common sense and again I have no claims to be right in any situation here)1.

I hear FLA is firming up as well. whats your take on that your heavy in FLA... other states its fine though as we know.. especially TexasI have seen many situations where a reputable wholesaler who is licensed has a deal and some crappy wholesaler catches wind of it and blasts it out without the first wholesaler having any knowledge.  

This creates a WIN-WIN Situation and gives the Realtor incentive, to work harder on your behalf. 

Everyone's situation is different but can you take the cash budget that you have available and use leverage from a bank/other financing to buy a nicer property?

If you are trying to do both cash flow and appreciation then you may want to sell it in the next 5-10 years and realize your increase in value and this would be more difficult in a "run down" property and it may not appreciate as much anyway.Another thing to keep in mind is that a more "run down" property will attract a less quality tenant which can create more stress and worry.

It sounds like you've given a lot of thought to yous situation. 

People underestimate how tough and stressful an impact that can have on a family dealing with a house rental with a tenant in it.