The place to start is with the fundamentals of real estate.

If that location does not appreciate at all there is not much left to help buffer performance on a single family.The numbers have to work obviously but there are many more fundamentals to take into consideration along side "seller generated proforma caps".Total returns should factor equity gains.

I am trying to understand the fundamentals of subject to.

Bakersfield still has some good deals and relatively sound fundamentals. 

The contractor must be licensed/bonded/insured, not just affordableSupportive Friends and FamilyRealtor -- An exceptional real estate agent is fundamental.

Of course,know the numbers and fundamentals of your target market.

Stick with fundamental.

I've always bought turnkeys and one thing I think is super-valuable about them is with them being so hands-off, the investor can focus on learning fundamentals--crunching numbers, management, due diligence, etc.

Zillows senior economist illustrated some of this....When one considers all factors of investments you will see the picture changes dramatically with adding in all the fundamentals. 

However, I think this question relates to some of the fundamentals of taking a property under contract.