Need advice on an underwater investment

[Nick Arenaso]

I hope I am posting in the right forum.  If not, please let me know and thanks in advance for not judging me on my bad investment :)

In 2007, I thought I could make some $$ on a preconstruction flip.

I bought a very nice condo in a preconstruction building in the Chicago city limits (in an up and coming area, not too upscale, but not the hood - close to a lot of nice stuff and the mass transit)

I bought for 390k with 5% down and took out an interest-only loan.

Alas, the real estate bust happened.  However ... my tale is not a tale of complete woe.

I rented the place out and I still manage to eke out a miniscule profit each month after mortgage, insurance, HOA etc. Minor repairs definitely do bite into the bottom line but it is a slightly positive cash flow.

I just am tired of treading water - I am not building equity, I am still underwater when I look at comps in the area (I think the place is conservatively worth 350K).

I am not real-estate saavy enough to know what my options are.

(1) I dont think I can refi cause my LTV is horrible.

(2) I cant sell without paying out of pocket

(3) I cant short sale

Any ideas for an exit strategy?  I just need folks with experience to weigh in.  WWBD (What would biggerpockets do)?

[Mark Ainley]

@Nick ArenasoWhere is the condo located and how big of a unit.  Rents have gone up considerably in recent years have your rents followed that trend?

Do you have the ability to use it as your primary residence and attempt a Harp loan?

If you are break even you are not in too horrible of a position.  Being 8 years down the road ins your principle going down at all?