In 99.9% of the cases the party making the offer will be asked to provide the documentary proof mentioned previously, and of course rejected should the seller not believe he will be able to complete the transaction.  

Since the house "Needs Major Repair," I am not able to get traditional bank financing and thus would need to borrow from a private lender to show proof of funds.

A proof of funds would be a good thing when dealing with realtors...

Kitchen remodel with wood cabinets, granite, new dimming LED down-lighting, new breakfast island with glass doors, and new tile.New tile in two bedrooms and wood plank style tile in the family room.Fresh paint inside and out. 

Proof of “cause” or a reason for the termination is not required.

The structure seems bulletproof, but I wanted to run it by y'all to see if I'm missing something - thanks for any feedback you can offer.I bought my primary residence for $168K, and paid the mortgage down like a mad dog. 5 years later, I did a cash out refi (30 yr fixed, 3.9%) for $120K, which paid off the $34K left on the note, and used the dosh to buy an $82K rental duplex.

Why not do a proof of concept?

If for some reason I can't figure it out, I know it will cost a minimum of $100 to have a repairman come out so for most appliances I can get a decent replacement for $100 - $150 (front load washer, glass top stove, ect).

Ask him if he had found any major problems that he took pictures of, if there are only minor things, cracked glass, cracked tile nail holes etc. don't even bother, if something major then it be be good to have to document and use for negotiation.

I have proof they did not, both bills and a letter from the utility stating they never transferred service.