Jim, the perceived value of the home has changed since the time you bought. Obviously, there is nothing you can do about it now. You were in the wrong place at the wrong time. You could lose a lot more.
I rent homes for a living. I KNOW exactly how much it costs to rent homes. Based on what I know, if you were prepared to stick with this property for the long-term, you might be OK or even do well. However, if you are unprepared or are looking short-term, this house could drain you financially, mentally, and physically.
In my opinion, this RE heck is just the cost of doing business. It's easy for me to sit here and yap my mouth, but I'd tell you the same straight to your face. If the rent scenario does not pencil out, I'd list the property at $189k + 6% and take the first decent offer that hits your desk. This presumes the price is under currently listed comparable properties.
You have a badarse SC with 3.6. That's good medicine. Use it.
