moving dilemma

[teacherman84]

Advertisement - Members don't see this ad

So this isn a medically related question...but probably applicable to many non-trads in this economy.
I own a townhouse and none of my prospective med schools are remotely nearby...and I dont like the idea of renting because I couldnt afford for it to sit empty for any amount of time.
So I want to sell it...but with the downturn in the economy I will most likely not be able to sell it for more than 15-20 grand under what we owe.
My question for those who have experience with this, What do I do about the difference? Continue paying my mortgage until the difference is paid off? Secure another loan for the difference without any equity?
Any info would be greatly appreciated...thanks.

 

[teacherman84]

As an addendum to my own post...
The rental market isnt too bad where I live...the gulf coast of FL, next to multiple military installations. I would like to end up here for my residency...assuming I do FM as I plan now and maybe even for a good part of my fourth year. Would it make more sense to rent it out now? We would be taking a 150-200/month hit because of the difference between what we would get for rent and what the cost of our mortgage and HOA is now. Over 3 years (if I am able to spend most of my 4th year here) that would be less than 8 grand, and the difference between that and what we would lose for selling would probably cover the the cost of it being empty for a few months here and there between renters.
Again, any thoughts?
I figure I could take out a student loan for 15 grand and let it sit in a money market account so I would have it on hand if the Apt is empty.

 

[kia ora]

As an addendum to my own post...
The rental market isnt too bad where I live...the gulf coast of FL, next to multiple military installations. I would like to end up here for my residency...assuming I do FM as I plan now and maybe even for a good part of my fourth year. Would it make more sense to rent it out now? We would be taking a 150-200/month hit because of the difference between what we would get for rent and what the cost of our mortgage and HOA is now. Over 3 years (if I am able to spend most of my 4th year here) that would be less than 8 grand, and the difference between that and what we would lose for selling would probably cover the the cost of it being empty for a few months here and there between renters.
Again, any thoughts?
I figure I could take out a student loan for 15 grand and let it sit in a money market account so I would have it on hand if the Apt is empty.

if your mtge is, say, $1500/mo., and you are able to rent your home only for, say, $1300/mo., you can claim a deduction for the loss on your income taxes. this assumes that you have an income. consult a tax professional. if the sales market is not favorable in your area, this may be the best approach - and you might not necessarily need to do this for the 4 yrs of med school. if, after a year or two, the market improves perhaps you then could sell your house at a profit. good luck!

edit: I do not know if/how the HOA would figure into the deduction