This means first actual cash flow occurs after recovering the negative value which could take years.  

A good CPA, advises on threats before they occur, and not tell the client after the fact they owe money and the client is shocked.

Foreclosure is when the sale actually occurs.

I believe the best thing you can do if this situation occurs to you and your appraisal comes in lower than expected is to be prepared with valid comps of your own to make the case against the lower valuation.

(I saw this occur and I don't know how it got resolved or if it did.) 

Have you looking into the Navarre Beach or Panama City Beach Market: 1 Location: Located on the Gulf of Mexico, offering beautiful beaches and crystal clear water. 2 Lifestyle: Navarre Beach is known for its laid-back, beachy lifestyle, making it a popular destination for vacationers and retirees. 3 Investment potential: Property in Navarre Beach can be a good investment since there is tons of new construction occuring on the beach and inland. 4 Community: Navarre Beach has a strong sense of community, school systems with many local events and activities throughout the year. 5 Natural beauty: Navarre Beach offers a variety of natural beauty, from the beaches to the state parks and nature preserves. 6 Quieter: Navarre beach is a quieter alternative to the busier beaches of Pensacola and Destin, but still close enough to enjoy the activities and amenities of those areas. 7 Military friendly: Navarre beach is home to Hurlburt Field Air Force Base, making it a popular destination for military families and veterans. 8 Affordable: Navarre beach offer a more affordable option compared to other coastal towns in Florida, making it accessible for first time buyers or retirees.Rentals, appreciation and gentrification is happening in these areas with new price point emerging due to infrastructure being built out. 

I'm in contact with the city attorney, because there's also a Georgia law where a water provider can not put a lien on a property, if the property wasn't in the hands of the owner at the time the charge was occured......Since I owned it in 2014, then I shouldn't have to be responsible for a water bill of a previous owner, if they forgot for 14 years to file this lien.....Wish me luck

Applying those principle, focus your energy on doing the preventative things on a day to day basis that reduces the risk of claims from occurring in the first place  (siginign vendor agreeements /collecting insurance certificates) and carry appropriate levels of insurance.

This is where all of the big budget busters usually occur. 

I'm not saying that your plan can't work, I'm just pointing out that these types of extremely cheap properties usually come with TONS of unique management and sales challenges that don't occur with more run-of-the-mill properties, so you'll want to study up on those issues and have a game plan before proceeding...regardless of what you decide to do, it may be a good idea to consider how you could leverage this deal as a springboard to get you to other, higher-grade properties......the good news is that you're only $5k into this thing, so you're not in too deep...yet...Good luck out there!