Vegas foreclosure mess?

I am going in escrow in two days on a second home that I will use as my primary residence. I bought our current, small,1200 sq/ft home 4 years ago during the “boom” and have a 200k mortgage. If I try to sell our current home I will lose about $ 30,000.

My family needs a bigger home as we now have two children and are feeling crampt. The new home is 2300 sq/ft in a better area that last sold in 2006 for 369k, we are picking it up for 215k and freddiemac is even paying closing cost.

We make about 95k/year and have 80k in the bank and will put down about 45k on the home and then rent out our current home. Realistically we can rent our current home out for $ 1,000/month and our mortgage is $ 1200.00.

I am scared to death to do this but everyone says this is the time to take chances. Am I insane to attempt this? Also, as I will losing $ 200.00 a month renting our current home out, will there be any tax savings that would offset this?
We do plan to live in the new home for many years to come. Home was built in 2006 and is in great shape.
trblmkr30, thanks. Great tax tip!

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