Alternately, If you need some assistance with your rental property, I suggest checking out your local Real Estate Investors Association (REIA). Or, you can try http://MrLandlord.com
Just in case, here's renting information from the State. http://www.legislature.mi.gov/documents/publications/tenantlandlord.pdf
I would be very hesitant to just trying to walk away from either home.
Now as suggested calling Wells Fargo will help switch you to a fixed but will not help you make the payment or reduce the extra $200. Also, there may be closing costs involved and you may actually end up with a higher payment. This should not be your concern now it should be making the payment and saving your credit.
As for walking away as long as you understand this will hurt your credit now and in the future. It would be best to get someone in there to help you make that payment. As for a short sale the bank will check many thing before allowing one. Before they take a hit they want to make sure you have eliminated all other options. Have you attemped to sell? Can you afford both payments? Do you have funds in savings? They will ask for a very detailed financial statement. Doing a short sale is always an option but you can not do one unless you have an offer and that requires selling the home. This may be difficult if you have a tenant. Besides a short sale will still effect your credit.
Again, I would suggest getting a new tenant and thinking about your future. Call a local real estate agent and ask them to list the home for lease or lease with option. They can help you with the lease/option, pricing and credit for a small fee.
You are just starting out and you will need your credit. Hope this helps.
Realty Executives e-Group
But, it sounds like you really would rather sell it than keep. Put it up for sale ... contact 2-3 Realtors and see what they feel is the value of your home. If they don't think they can sell for what you owe, a short sale is another route. Just make sure your Realtors have dealt with them before. Here a good website for helping you determine what you can do in this situation: http://www.hud.gov/foreclosure/index.cfm
Let me know if I can help find you a Realtor in your area.
Best of luck,
You can also call another lender to refinance.