Did I miss something? Family income is $215K or about $12K/mo less taxes.
Tempe rent 1K plus SD rent 2.5K totals $3500/mo
Should be plenty of money to carry the condo, even empty no rent, while providing additional tax benefits.
Not thrilled with the idea of walking and letting bank hold the bag, which ultimately costs everyone in the long run.
My suggestion is to preserve your capital by staying the course and rent the condo at a loss. You are correct it is a slow bleed, but I think it is the best direction. And was previously mentioned, try carrying the paper on a sale. For the right buyer, it may work for all.
And my final bet is that if you are making $90K part time, you have a knack or are a major type A person who will continue to work even with a family of 5. Which is that much better for your immediate cash flow.
I hope not at the expense of the kids. Not to be mean; just making a sweeping generalization.
