I cringe every time I see a new post about a guru hoping that the person making the post comes to their senses before handing over a penny.I've made much bigger financial mistakes than this (10x!) 

thank you everyone I think I almost made  a big mistake I was looking at it on a long term buy and hold. and I ran the numbers it wasn't really working ( they said 300 cash flow a month  but it was 1300 rent and 100 for mortgage didn't factor in anything else but I really wanted to get my first deal under my belt not to mention a property for next to nothing that comes with a tenant I really feel that buy and hold is best for me and I though I could do that with this deal but it don't sound like this method is good for that also I cant flip cause she is owe 80k and the comps are around 60k.

Since that is the case, anything that wasn’t done incorrectly was simply a mistake.

You will still make mistakes along the way we all do.

I made the mistake of viewing this at dinner time.

That qualified me for a $25k job (in 1998).I just took a real estate licensure course that had quite a bit of rigor (though broad based, not very specific on any of the topics) and I'm sure that there are a lot more millionaire real estate investors than there are millionaire real estate agents.I have a really good job right now as a programmer and trust me I've had to read lots of very rigorous books to get here and to maintain my skills but it won't make me rich.What this business really takes is "big brass ones" (@Joshua Dorkin, podcast 105) and if people find that in these books then I think they are the books with the most value in this industry.Yes, if you rush in you might make a mistake that will cost you thousands or even tens of thousands on a single deal. 

I understand we made a fair number of mistakes and assumed significant risk with the purchase, my questions are,- Where do we go from here and how do we interact with the very small city who knows us by name?

Granted I made some mistakes, but the tenancy was salvaged and everything is good. 

No harm ever comes from doing that and it could prevent some big mistakes.

It's always good when you can laugh about your mistakes after the fact.