http://www.sfgate.com/realestate/ar...n-Noe-Valley-hits-10891714.php#photo-12295787 Has the best weather in SF....
Same price. No state income tax to boot. Good gosh. Look at the slide show. http://www.nashvillesmls.com/listing/1793315-1641-whispering-hills-dr-franklin-tn-37069/
As a Tennessean I have to point out that the "No income tax" is somewhat misleading. We have the "Hall tax" which taxes interest and dividend income at 6% over 1250 dollars per year. https://en.wikipedia.org/wiki/Hall_income_tax There are no taxes on earned income or capital gains here though although the sales tax is 9.75% on everything including food. For that kind of money you could buy hundreds of acres in a rural area and build a very nice home.
Since you brought up temperature, just for fun I looked up what 3.5M would get you in Hawaii .... not much Nothing even worth posting.
Forgotten Main Street as affordable new frontier: Water Valley, Mississippi If it's value that is most important poorest states will be a good choice...