Underwater now, what's best way to get out?

[Sandra Johnson]

I'm a new member, just days old to this site, not sure I'm posting to the most appropriate forum. Friends praise this site, I'm seeing why! I've read lots of rent vs sell topics, some applied to me, some not. I live in a SFH, brand new construction, I bought in 2006. I owe $170K and have been paying extra principal each month. From recent sales in the neighborhood, I could probably sell for $160K. Close but not enough. What is the best overall decision: stay, rent, or sell? I own rural acreage free and clear and my goal is to build my next home on it as soon as possible so staying in my current home is not my first choice. There is a good chance to rent as my neighborhood is near a private university and there are other rentals in my neighborhood but the going rents will not fully cover my mortgage, taxes, insurance; not to mention the HOA fees, lawn service, regular maintenance. Is renting a slower 'leak' of cash than staying a paying extra principal or selling outright and having a $10-15K debt straight out? Have others been in this situation? Are there obvious things I am overlooking that I should consider?