@Megan Shay has a good point about the Kitsap area, but it's steadily climbing as well and you'll need to be strategic.

Some people use the short sale strategically, and it can actually make a lot of sense if you are ok with credit score dropping 100 points, and waiting 2-3 years for repair (if you do what you are told by a loan officer/credit counselor).  

Once repaired, put it on the market. maybe consider some strategic but low-cost upgrades like paint/flooring/backsplash/ inexpensive bathroom/kitchen upgrades to make the unit  pop and sell for top dollar (get your agent to make some recommendations on what they think would make it pop in your market). good luck!

I have a friend (we'll call him Joe) who is considering doing a strategic default on his home.Although it's a struggle, he makes enough to pay his mortgage.

So, it may not work all the time.I am not really a NPN buyer, but I will buy them for strategic purposes with a goal of acquisition.

Florida’s overbuilding of the condo market will require strategic and proactive strategies to accelerate sales.

Some cases I've seen relatives that come to live with the borrower but you will have to document the heck out of those strategic scenarios with registration card/drivers licenses registered to your address, utility bills, the relative occupants bank statements, or other documents that show they will live there.

If you strategically plan your rental's between appreciation plays and cash flow plays you can sometimes create enough depreciation loss to offset most of your taxable income while still receiving cash flow from a month to month perspective.If you have 100,000 annually in rental income or 8333 a month in gross rental income you can find a property(s) that still cash flow albeit a lot less that net -8333 a month with depreciation factored in to end up with a $0 tax liability scenario (no tax advice, consult a tax advisor).There are pros and con's at the end of the day to each since rental's arent stress free either =/ so I would always default to have a balance of different products in your portfolio depending on your goals.

(This is how, I think, most non-strategic tax accountants would do it).This question may be moot, because it depends on each individual's end goal, but was curious anyone's initial thoughts, pros/cons, or insight into other options we may be missing.

Three houses and 100K equity, start looking into strategic asset protection.