I bought a new home in Las Vegas over a year ago thinking that I could sell it for a little profit after a couple of years but with the current downtrend in appreciation there, my mortgage payments and operational/management costs far outweighs the monthly rent I am getting from the property. Since the house was purchased with a 5yr ARM based on the Average Treasury index , my monthly payments has ballooned and now have a thousand dollar negative cash flow(without negative amortixation). If I chose the minimum payments my negative will be reduced to about $500 but my principal would increase. With the current market in Vegas, selling the proprty would mean losing close to $10k maybe more. What would you do if you’re in my situation? Any advise would be much appreciated.
Thank you.