There are many things to consider with regards to this. One would be how does the difference impact your life? Can you pay the difference and get by? Is there a viable refinance solution to the home? If you however are already out of the hosue and refinance it you will have to do what is called an investment property refinance. This could mean higher rates then you already have, so check wisely. You will want to look at the tax benefits of renting with a talk to your CPA. You will write off these items on a schedule E and that includes depreciation . All of this will reduce your effective tax bracket. Also, look at the cap rate (calculators available online) If you can rent it out and afford the upside down rent you have to ask yourself "Am I ok with someone paying x% of an investment?" for example if your payment is $1800 and you can rent for $1400 then effectively someone is paying 78% of that investment for you, and I would bet your company 401K doesn't match 3 for 1? Although there is alot to think about and another thing is do you have the stomach to be a landlord or would you use property management? (there are fees with property management, so again do your research. I am in the lending business and own rentals so if you have questions let me know.

Tue May 13 2008, 17:20

You can rent out for what the market is calling for and pay the difference. Just a thought...that is what I did when I moved to GA for 7 mos. The difference is better then letting it sit and or paying the entire amt.
Kimberly Peters

Tue May 13 2008, 09:05

Have you considered speaking with a lending professional? Someone who is reputable, up to date with the latest mortgage programs and qualifications may be able to help you refinance to reduce your monthly payment, thereby making the rental situation more feasible.

I am not a lender, Im a Realtor, but I have a number of trustworthy, lender contacts that I work with frequently and would be happy to pass their contact details on to you if you email me.

I also agree with the advice before me that suggested seeing a tax professional for advice.

Thu May 8 2008, 09:05

Speak to a Realtor and CPA, you will have some tax changes when you use your home as a rental.
If you like you may contact my supervising broker in Denver she is both a CPA and Real Estate Broker.

Wed May 7 2008, 18:29