As discussed the property at the time of closing was occupied.

My question is: when wholesaling, after finding a great deal, do you need real proof of funds to the get the property under contact or is there a way to get it under contract, find a buyer and complete a double closing/assign the right to sell without actually having the cash for the property? 

If the purchase is done in cash, as you mentioned, they’d have more flexibility, but they’ll still want to carefully consider the tax and legal implications of the subsequent sales.I hope this helps, and good luck with your client’s deal!

Will another property come in better and may sell cheaper after you close?

(e.g. peace w/ Israel, gambling legalization, etc.)

There are a lot of affordable properties in Knoxville, but the growth isn't terribly vibrant and the deman isn't what you'd expect for a city of that size and that close to the Smokies - you're mostly looking at college rentals for the meat of the move season, and the SF market, while it exists, doesn't really compare to Chattanooga. 

The other hurdle many run into is that you need to have funds to close and cover reserves in a US based bank account.  

This eviction altogether cost me $20,000 - legal fees, lost rent, and rehabbing.

Closing costs + rent ready costs + lease out costs - those you need to be compensated for and new investors are always surprised that they can add up to 5 or 10 or 15K.  

If you want to buy in University city, I recommend staying as close to the universities possible in order to attract the best tenants and have the best room for appreciation.