Legal Question in Real Estate Law in California

There are several questions you have to answer for yourself.

Do you believe the property is going to increase in value and will it increase in value enough to warrant this use of your funds?

Do you have the funds to carry the property to the extent the rental does not pay mortgage, interest, and upkeep/repairs.

If it is barely upside down, you can try to have a sale to minimize the harm to you.

These are mainly business issues, rather than legal. I agree with Mr. Selik, It's important whether cash flow from rental covers your expenses, as well as the trend of local home values, which is upward in most areas. Can you afford to hang on for better times?