I am looking for some advice. Here is my situation:

I currently own a condo - owe about $98k but other condos in my complex are selling for about $65k. (All foreclosures) I have found another home that I want - ~$250k. (I am looking to upgrade.) My condo has been on the market for about 1 month. I currently have about $30k in savings. My credit is very good. My income is good. I could actually afford both mortgages on my income but I just wouldn't have a lot of "play" money left over each month. I am EXTREMELY ready to move out of my condo and to a different area (about 20 miles away). Remaining in this area is really kind of depressing for me.

I wanted to post here and see if anyone with experience in this area can look at my situation and let me know if they see any solutions that would help me get into the new home that I really want. Any advice is greatly appreciated.

Renting your unit jumps out at me.

Consider HOA restrictions.
Rent vs. mortage will you be positive or negative
Mangae yourself vs hire property manager.

I'd like you to have someone else lookat your situation in greater depth to give you a more sound opinion.

But it sounds like values have dipped pretty low and might be likely to head higher in the next 3 to 5 years afterthe foreclosure storm. Why not ride out the storm with the help of a great tenant?

Thanks for your response.

The HOA will allow renting for certain circumstances.

The rent I would get would cover my mortage, insurance, HOA, and property mgt fee.
I would have a company manage it for me.

You can take a noncommittal step and talk with 2 or 3 well know property managers in the area. Ask them what they can get you in rent, what fees they charge and what obligations you will have based on the 'property management agreement'. That is a pretty powerful document (in my area) so maybe one of them will provide you a copy so you can see what power you will be turning over to them. It's not a bad thing that they have the ability to act on your behalf, but it is a good idea to undersdtand the scope of what they can do, so you will choose all the more carefully.

And maybe ask each of them if renting is right for you. It could be that it is not a good idea, so maybe they can help you identify so pros, cons, pitfalls, etc.

Good luck to you.

All of the points that doin bpose have listed are very good things to ask or follow. Based on your post with the savings and income one other aspect to look at is the tax aspects of having rental property. Might be something you want to talk with an accountant about with your situation.Rentals have been good to me in the past as tax shelters but you have to look at them in long terms which may not fit your style. Renting your condo sure looks better than any other option ( short sale/bringing a check to closing/foreclosure )you might have. Remember things will get better but NO ONE knows when. Good luck to you.