May fly down to meet if all looks goodWill leverage the killer agent's network to help setup the team of property managers and lenders on the groundClose the dealHave tenantsKeep tenants happy and stress free by providing spectacular servicesReceive check!

If this is a one time shot then fly your friend in but remember housing him costs, transportation daily to work, food costs, airfare etc.

But, he's saying that since he's offshore, I can't view the property until the security deposit is submitted to Homeaway in which he will then fly out to do the walk-through or send the keys via FedEx.

That won't fly, people will feel cheated.A few other things to consider. 

I had to learn how to do a lot on the fly, I staged the house re worked the front porch and took flowers right out of my own yard to give it some curb appeal.

That would defer the tax on the other 50%.The only fly in the ointment I can see is that when your parents were buying that property initially to finish up the first 1031 they had to have the intent to hold it for investment purposes. 

If you're new(as you say you are,) then you're at a competitive disadvantage to those who are able to make those estimates on the fly.

I would agree with Jessicas' assessment and advice of the differences between the two counties @Etahn Smith keep searching Bergen County there are good deals to be had there, as you do your research you may even stumble upon a few areas where deals exist that are currently flying under the radar ;-)

Fly there, meet and greet with rehabbers and one local boots on the ground, then fly out every two weeks to see it thru, you could make a lot of money. 

Where I live no one I know of does it, except guys that are fly by night.