Several things for you to consider:

1) Total 5 year loss of $60000 may not be such case because you will have mortgage deduction and property depreciation deduction, as well as other misc. business deduction (a rental business). Your overal 5 year loss may be only 40000 after taking account of all tax deductions total.

2) I bet Florida's price may recover very well after 5 years from now, probably back to your purchase price, therefore, the 90K loss may be avoided.

3) Above 1) and 2) all depends on your income. If your family income is above 100K a year, I think you afford the negative cash flow. In additon to that, you can still buy one more foreclosed house at 100K.

4) If you combined the tax deduction from your two houses, it can offset lots of your income

Just points for you to consider. I am an investor, for such an inexpensive house in the range of 160K, I don't even bother to sell it. I look for the long term. I am seeing Florida to recover nicely after 5-7 years due to massive baby boomers moving down from the North. My view may not be popular, but at least it gives you a chance to think outside of the box.