Beerock,I don't think you understand operating expenses yet, so I'd bet that the properties you're looking at are negative cash flow, not break even.

Then BANG, I call my partner, and he just starts putting things in the negative state..

And yeah...some people have negative cash flow banking on appreciation in certain markets.

Obviously, properties with negative equity aren't going to work for the wholesale flip business model.

can anyone explain to me the complete process for a short sale so I can better grasp the concept?

Put that theory into action and let go of all that negative thinking.

if you can't sell it for a year, when you do and add in your negative cashflow + repairs + 2k flipping penalty = pretty good loss if you get stuck with it for awhile, and about break-even if you don't (not including possible vacancy or major repairs).

Here is what I look at - it's the only way that makes sense.Does the property provide a positive cash flow or a negative cash flow.

investors who bought a year and 2 ago are facing either foreclosure, HUGE negative cash flow, or cancelling contracts and forfeiting their 20% deposits.

I have spoken to 2 other landlords; they both told me that when they started they had negative cash flow and raised the rents over time until they flowed.