Should I pull out of this deal and lose escrow money?

[Jonathan Marsh]

About 6 months or so ago found a new development being built in Buda. Decided to lock in one of these homes with 20% to use as an investment property. I wouldn’t have been cash flowing and would likely be losing $200/month. I was okay with that for the appreciation and equity gain.

The economy continued to worsen so the plan then changed to put 5% down and move into it so I could be more liquid. 

Due to unforeseen circumstances I have to move to Ohio. If I put 5% down and rent it out the mortgage will be roughly $3k/month and I’d be able to rent it for only around $2,200. Losing $800/month is not a good deal. I do not want to cough up another $50k in equity to bring down the payment.

I can’t think of any other options other than pulling out and losing my deposit. Any other ideas?