This creates a large negative equity position.  

Perhaps it's a negative reflection on the fact that fame and celebrity often in this country give individuals free reign to commit crimes with out penalty of consequence. 

My question is - is it foolish to hang on to this property that's at a negative cashflow, or am I on the right track thinking of the longer term benefits?

Isn't that negative or neutral leverage at best? 

@John Paul Palace their bggest challenge is finding competent PMCs to recommend to their clients.That's what most of the negative feedback here on BP is about them - which is UNFAIR as they're selling a rental property, NOT PMC services.Recommend you do your own due diligence on PMCs before just going with their recommendation.

Long story short, probably a negative cash flowing property.

You can also see into the yard which is a massive negative for tenants.

I'm making two assumptions here - it will take you a year to get the tenants out, and so you are cash flow negative for a year, and that year of negative cash flow is a lot less than the loss in sale price you will need to take to get it sold as-is. 

I have cash flowed negative almost every month.

I claim if you properly allocate for sustained expenses this is negative cash flow.