As long as you have the intent to use the property for investment the source of debt or type of property (commercial, residential, raw land, multi/SF etc) does not matter.

Is the $25k cash flow after debt or before debt (NOI)? 

Some will buy using floating debt or short term fixed debt of 3 or 5 years to get a smaller interest rate to try and squeeze 1 to 2 % more coc going in.Those properties can be a ticking time bomb.

If the debtor doesn't pay off the lien in the time allotted by the county, you will have the option to foreclose.  

If you are facing a debtor who is getting involved in Bankruptcy and you believe that they are purposefully abusing the system, find a Creditor's Attorney with familiarity in Bankruptcy Litigation.

With a tax write off, much like the interest on a lingering debt, only reduces the interest (debt) or taxes paid.When you are then able to take the payments you were paying on the now non existing debt, and apply it to the rest of your debt, you are saving more money.

However, "protecting yourself" against a debtor's nonpayment will likely involve judicial action, which is accompanied by significant risks and costs.  

There has been a raging debate between Kiyosaki "Rich Dad" with the use of leverage and Dave Ramsey, with the no debt or debt snowball.  

Even after he filed for bankruptcy, we were not discharged as debtors.

Now, from my learning experience and talking to other investors (actually, I'm going to a sheriff sale also this Thursday to observe and learn from the process).Usually the bank can outbid you (they have their agent there also usually) if it doesn't cover the expenses and the money that the debtor owe them.