Negative cash flow - when/how to get out?

[Nicholas N.]

Hi All, I purchased a condo as a primary residence in 2005, but it became a rental after I had to relocate. Since then, rents in the area have decreased resulting in a negative cash flow on the property. Property values have also decreased, so the negative equity is significant. I've contemplated a short sale. The money saved each month could be better invested elsewhere, though I'm not sure the bank would approve or whether the credit hit would make future deals unnecessarily difficult. Any suggestions on what you'd do in such a situation? Thanks, N