Mortgage payment going up soon?

I have a home in Cornville AZ and found that the mortgage payment is going from interest only to Principal Interest in Feb 2016 and my payment will go up by $800 a month. We can afford what we pay now but not with the increase. I am renting the place out to be near my parents and help take care of them. There is no income made on the rental, we actually are loosing. The other catch is my husband has an LLC and if they look at that it will seem we can afford this, but the money stays in his business to keep investing into the next event he puts on, or his company could not exist. I dont want this to affect his company (short sale or bankruptcy) . I am not sure what to do, if it is better to live in the house and short sale, or maybe I dont have to live there to short sale? Not sure of the tax implications involved as I get a lot of mixed messages from the attorneys I spoke to. I am currently trying to sell it myself lower then its appraised value, as no houses are selling over $300,000 in the area. Thank you for any help in this.
Signed a first time home buyer who learned lots of lessons!
Added (1). Here is more info: The house has due $305K (this is the payoff quote) I am trying to sell it for $290K. The appraisal was for $290-$305K but realtor said nothing is selling above $300 yet in the community. I tried to refi called local banks and Quickenloan said I have to pay $30-45K to do so and that it was a rental some wouldnt refi unless we lived there, but I cannot come up with that money they want. The deal is terrible, had no idea what I got into, trying to find what to do now.

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