Then pile all the crap in one spot (garage?)

Sure, @Alberto Murillo Since your Father is gifting you property as opposed to currency/cash, you will need to determine your Father's basis in the property (less the allocated financed amount); of which you would be required to "carryover" during your ownership going forward.An example may better clarify:  Say your father gifted you 100 shares of ABC common stock which when he gifted it to you the fair market value (FMV) was worth $10.00/share or $1,000. 

Best thing, in my opinion, is to sell and move on.In my experience the sweet spot for rentals is $1200-$1500.

Your may be in a tight spot if the security deposit is not enough to offset the loss and damages.

Both units are 2/1 with a single parking spot.$1,300 doesn't exist here.

my appraisal was being done and the title search showed up that these folks had what I had already known and the whole bank deal blew up for me.I can only imagine that there must not have been a problem with the folks that I chose for the other homes.....Anyhow, this has put me in a tight spot as I need the equity that I build into a home to continue to do the next 2-3 deals.  

You've definitely landed in the right spot.

This is part of the reason I still fund my retirement accounts heavily, despite preferring real estate over the stock market.

You have came to the right spot!

I would like to keep everything in one spot so starting out with a good lender that I would want to use in the future would be great.