I agree with hotwire
If there is a way to keep it, i would.
OUCH interest only loans are a bad way to go. Your paying and paying and not getting anywhere. I would stop that.
Here is what i would do.
Get a real 30 year loan on the old property. Scale back expences, trips, vacations, eating out, etc.
Right now, you will only be able to rent it out for about what the morgage is, or perhaps a tad less (unless you can sink some more money in it)
Pay your current morgage on your new house. If you can put extra money on it to help pay it off faster.
In the next couple years, as the market bounces back, you will be able to rent it out at more then what it costs you. You will also be able to take some deductions on your taxs with it.
In 10 years if you want you can sell it and you will have eqiuty AND the price the house will have gone up or you can keep it as an income source.
Just my two cents...
Adrienne
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