Sell for loss or move in and wait?

[Sam A.]

I bought a 3/2 in 2005 and recently started renting an apartment while going to school 100 miles away. I owe 130k on home and have it listed for 124,900 and have been lowering for last few months. My plan, after reading many threads on this site for the last month or two has led me to originally sell old home and buy duplex/triplex with VA home loan.
Now...I have been accepted to a different school program back in my hometown. Question I have is this: Do I move back into house and try to refinance (original at 6.25%) and wait until bluer skies...or do I still try to sell SFH and keep looking for good deals on duplexes in hometown?
My wife and I have enough money to keep paying mortgage and rent and will continue to have that, but I don't want to keep eating 1100/month on an empty house that may not sell. After realtor fees, etc., we are already expecting to eat 10-15k just to sell it. Is it worth it? Thanks for your time and I eagerly await your responses :D