And still, for others, the answer may be to relocate the funds to another market and purchase additional properties. 

They do conduct a background check, credit check, will check cash reserves, and will make sure the borrower is using their funds for business purpose only, but there is less emphasis on the borrower and more on the deal itself. 

While engaging with the Bigger Pockets community, I've noticed many investors seeking funding.

Just make sure you try to househack in a desirable area where people will pay a high amount per bedroom. 

We are wondering how to go about showing proof of funds if the deal ends up being an on-market deal.Any advice would be helpful.

I am getting a 5% interest rate, 30 year amortization with no balloon, no prepayment penalty.I am deciding the best way to fund the rehab. 

I'm of the opinion that index funds are a better investment unless you are really hands on.

I ran some quick numbers and would estimate (assuming you have good credit) you could borrow around $415k-$420k, which includes funding 100% of the rehab costs.Have you calculated your expected profit based on selling after rehab and if you decide to keep long term? 

If your goal is to replace an active income, have you looked into debt funds? 

In this case the current financials on the property aren't great(rents well below market value and the owners family living in several of the suites) so the lenders will likely not provide the funding based on poor NOI.