How to handle a bad investment

[William Ephraim]

I'm looking for advice or at least encouragement. Here is the deal.

Back in March 2008, I was very eager to purchase a home. I went ahead with a deal to buy a house at a premium price with the intention that later on down the road I would turn it into a rental. I have since moved to a different area and have rented the house out for about 4 years. I currently pay about $100 on top of the rental income for the mortgage. I have looked into selling the house but I would be out about 10K, due to loss of value, realtor fees, etc. 

So, here is the question. What do I do to make this "investment" worthwhile? Can I do anything to improve my position with this house?

Do I continue to hold onto the house and try to pay it off, and build equity in the house?

Is it even possible to refinance a house that you own as a rental?

Do I look into selling the house and just eat the 10K (I'd have to come up with this money)?

Any advice would be greatly appreciated. 

[James Harris]

William, Have you considered selling via a lease option or rent to own?  You can charge $10k as a option consideration, if the property will support it.  Charge higher rents.  Then have the buyer cash you out at a predetermined point in the future.