Any help of recommendations would be appreciated.

You are terminating their lease, which is done without court involvement.I recommend you present the tenants with an introduction letter as soon as you close on the property.

I would recommend getting about 3 bids and going from there.

I would recommend against it and here is why.

Little supply, high demand ... voila, high prices. 

The good news is that Fannie Mae and Freddie Mac recently relaxed underwriting guidelines to allow for it.i recommend checking out Freddie Mac's Home Possible and Fannie Mae's HomeReady program.Outside of that, working with a mortgage broker can also help you shop around for lenders that allow for boarder income.Good luck!

@Trey Onufrii It's tough to say which one is the better investment without more details, like - cost of each parcel(s), are there utilities close by (especially the Jomax site), what's the terrain like on the hilltops? 

The federal and CA state tax of 1 million cap gain (since it hits you in the same year), using online calculator it showed to be around $396K.   

One of my coworkers 96 year old grandfather had her go online and apply for a tax delinquent property in his neighborhood (North Birmingham).

In one of the podcast episodes, I remember them saying that if you are trying to avoid raising rents too high on an existing tenant, you are better off renting at the full amount you can and then giving them a discount on the rent.