Please Help!! Equity Line Short Sale Property Tax Question?

Okay - I bought a home 3 years ago on an ARM. I have since refinanced to a loan and have a 1st mortgage that is interest only fixed until 2013 at 6.25% and an equity line that is adjustable at about 9%. I currently rent the home and that covers the mortgage payments entirely, but does not give me enough $$ to cover taxes and insurance, which are together about $9,000 a year. I don't have an extra $9,000, so I've been paying the taxes out of my equity line. I now owe close to or just over what the home is worth...I have about 60k left on the equity line, but I'm scared to keep using it to pay for taxes and repairs. The home is has 3 units and is in a college town 3 blocks from the beach, so it's a great investment, but I'm thinking I might have to short sell it even though I've never missed a payment...I can't afford the taxes! Do I stick it out until 2013 and hope that my equity will have exceeded the money I used on the equity line for taxes, or should I short sell it now?

Actually, I have 30k left on my equity line, not 60k. Thank you to everyone for advice!

It doesn't sound like a great investment if you can't even rent it for a high enough fee to cover the mortgage.

YES, you need to sell the home, before you back yourself up into a foreclosure situation, which is EXACTLY where you are headed.

When you couldn't rent it to cover ALL of the expenses, PLUS a positive cash flow...that should have told you right there that you couldn't afford to keep the house and needed to sell.

Sell immediately. If an investment property doesn't cover all costs, including taxes, and leave you a 15% profit on your down payment, it is a poor investment. Bite the bullet, lick your wounds, and sell.

That property is an alligator that is eating you alive. You won't get a lender to agree to a short sale, in my opinion, but you can try. Dump that thing even if you have to pay someone to take it.