I think its possible, but very hard. Large potential to get screwed or to screw things up.
With that being said I'm in the process of engaging in the Virtual wholesaling business, kind of. I'm in Tampa and looking to wholesale in Seattle. The catch is that I'm partnering with my best friend (fraternity brother, best man at each others weddings , I trust him with my life) who has some background in REI. I'm fronting 3/4 the marketing budget (and taking a bigger piece of the profits for the first few deals). We compliment each other weaknesses and strengths. I'm good at analyzing data, setting up processes, talking to people on the phone, tracking data/leads, analyzing numbers, etc. He's good at the rehab side of things, estimating repair costs, and he's a good salemen/ negotiator. So I'm setting up the mail campaigns, handling in-coming leads, pulling comps, and running the numbers. My friend will inspect the property, estimate costs, and then give those numbers to me which I then use to figure out a Max Acceptable Offer. He will then close the deal, and take the deal to closing.
I would not be venturing into this deal with anyone else except my best friend. I know I can trust him and he's got the right skill sets needed to pull this off.