For a $100K gift, most likely there won't be a gift tax unless the parents have already made lifetime gifts is excess of $11.18 million. 

What does everyone do to get rid of the excess junk? 

Include information on repairs and or replacement of major systems.After the sale, pay off all your debts, put the payments and any excess from the rental sale into savings, and then strictly put yourself on a pay as you buy regiment for everything (does not mean not to use credit cards, just make sure you pay them in full monthly and are not charged to use them) except for maybe new rentals and automobiles (Autos only if the interest rate is 0% or less or equal to what you can get with conservatively investing the money).

Hypothetically, if the bank did choose to foreclose, how does the process proceed - Any excess would go to the original owner in which the bank signed the original contract with?

This seems to an appropriate place to share the following:A Comprehensive Wealth Management plan:1.Creates and Grows Wealtha.Assures that their investments are appropriate to achieve desired goals.b.Reviews their income tax situation to make sure they are not paying unnecessary taxes on investment income and excessive capital gains tax.c.Assures their life insurance is adequate in case of premature death.2.Protects and Preserves Wealtha.Reviews current plans for paying for the consequences of life’s unknowns.

When it's all said and done, the scales tip toward an agency (not a real estate agency, the laws of agency) and from that point, you violate your responsibilities to your principle when taking excess equity for your services. 

My main concern about investing in Gainesville is that I may deal with higher vacancy rates or lower returns because there seems to be an excess of supply, especially with condos. 

Pricing varies significantly by region and insurance companies underwriting practices and appetite vary by region.

Perhaps a good starting point would be to determine what your appetite for risk is and work from there.

It was an online auction that got bid up between me and one other investor, so I knew the profit was going to be tighter when I worked out my max bid, but with less inventory and more investor appetite, I knew that a $30-40K profit on a flip in that price range was to be expected.