I can't give you a solid answer on which would be best for your situation, but just a few things to keep in mind. 

So you may be in for a devil you know rather than the one you don't situation - which is why you're not feeling the love for a 1031 exchange.Many investors (we're talking like rats off a sinking ship numbers) are leaving areas like this (not it's not just CA) and putting their money to work in other geographies or other classes of property. 

Anyone ever have this happen, or any advice on this situation? 

I suppose one shouldn't laugh at something like betting on which lawn furniture flies away first, but it's always good to find the humor in any situation. 

Any advice is helpful on the situation.

@Jordan ArdoinInteresting situation and I look forward to the other comments!

That doesn't mean there aren't people and situations that it is ideal for.

That said, I would love to be able to get the tenant out so that way I can completely rehab the place, bring rents up and get someone in both sides that I approve of (I don't think they would pass my screening process).The situation I'm in is this...Owner of the house passed away (I believe) and left it to her daughter that lives in California. 

 Just wanted to add my two cents here as I did review a similar situation with @Jay Hinrichs a few months back.  

My approach would be to buy the one and feel out the situation.