Thanks everyone. I have sat down and looked at some of the prelim numbers – a friend who is a REIT analyst sent me a cash flow model that models out my loan over 30 years, plus looks at tax implications, rental impact, etc. Last night looked at what my payment will look like starting basically in 2011 when it resets at the end of 2010, less the tax savings. It does look like I am far better off just holding on to this place – either living in it myself – which until it resets, does not carry any negative holding costs, or if I were to rent it out and take the tax write off. It does get a lot uglier in terms of holding costs starting in 2011 if I cannot refi, but I need to look into this Calhafa program and find out what my options are there.
