@John MatthewsUnderwater homes where PITI that does not match rent amount  are tricky business dealsI never do sub 2 then wrap, only sub2 and lease purchaseIf the PITI matches rent in a slightly underwater like  5% underwater then maybe look at itThe desirability of the house itself and its neighborhood is really the biggest thing I look forUnderwater houses take in a lot of factorsIf the sellers are willing to contribute a payment say $200 a month to protect their credit and rent the property out on a lease purchase for market rent and offer a sales price that is based on appraisal,  and if that appraisal is lower than mortgage payoff, renew lease purchase, seller  continues to pay  the additional 200 per mo for another year toward principle and accept rentThe damage to credit with strategic default or short sale is usually quite serious, see www.myfico.comSee the amortization schedule to see how much principle is paid monthly vs interest in the current and near future years

Day to day, I run a successful business teaching folks how to properly apply these principles to build and use their own policy based on their investing style.I'd agree with Tom that the guys who are talking about it certainly have wrapped their head around it...and can shed some more light on it for you.

@Daniel LevineI am an investor who buys turnkey properties, some of them sight unseen.  

Then put in the offers.After awhile, you may learn the market real well and then you may be able to get by with putting in some offers sight unseen.  

WH=WholesaleWholesale guru junk is what you'll be reading on internet sites about how to wholesale, including on BP.Start by learning the basics, principles of real estate, understand contracting, the flow of what gets you to settlement, it is not marketing junk.

The networking possibilities alone make this sight invaluable.

One person's just as good another until he or she proves otherwise, and that's a matter of principle more than ability.

I have a story to share about a person I worked with recently about a house purchased, sight unseen, located in Detroit.  

Take a Real Estate Principles class online if you can, through your local college.Figure out the amount you are comfortable investing, etc. and then begin looking for properties that fit that criteria.

This basically meant the balance of the rehab fund would just get paid towards my principle and I am out for all funds put into the rehab.