I would do #2, or even better yet sell the condo to somebody that has a decent down as a 5 year interest only loan, then when they default down the road you can resell the condo for hopefully more dough. Isn’t this the really successful business that banks are in. Seriuosly though a condo is a no-no as an investment, buying it out of town makes it even worse. I personally would sell it,carry the paper on an i/o loan. It’s a win-win, you make good interest on the loan because the buyer has lousy credit or you resell it down the road (assuming the worst, that the buyer loses their job)when the market recovers. Third choice, move to Arizona, I hear the heat can be bearable if you have A/C. P.S.- I was born there but because of heatstroke I really don’t remember much.J/K
