Why can't the bank prove they're non-criminals by supplying the documents stipulated above as well?

This is a common practice for wholesalers to get around such a stipulation.

Everyone is buying the low-flow flush toilets now as a landlord to save on water.If the tenant pays water separately metered then you can leave the old ones in that use more.Some issues with the water saver toilets is that tenants hate them.They have to flush multiple times sometimes.I have found the key with toilets is to not buy the most expensive and not buy the least expensive.I do not like the floating ball valve assemblies.They can get stuck and keep the water running versus the newer kits.Also look for a toilet with a larger throat opening that goes into the sewer pipe.This will keep blockages from happening as that is where things get stuck the most before hitting the sewer line.Also pay special attention when you look at a model of a toilet on the display feel INSIDE of the toilet bowl when purchasing.Some manufacturers gloss coat the outside of the toilet but then use matte coating on the inside of the bowl.You want it nice and smooth on the inside of the bowl.This helps waste and paper slide down the bowl and through the throat into the sewer line without sticking.You can also stipulate in the lease that only toilet paper is to be put in the toilet.Anything else found with a blockage the tenant will be responsible for the repair and the damage.You can even have them sign an acknowledgement form on move in.

IF I opt for an "IOU" it will be with a very short leash stipulation and the IOU would come as a result of me paying for materials directly for this current job so he can finish up.

(Fannie Mae is the worst, but not the only)I'm fairly certain a bank wouldn't accept a stipulation in the contract that nullified this part of the addendum.That said, I've had some very long time periods where the bank was trying to get clear title, and was pretty reasonable during that time.

your purchase agreement or contract probably stipulates you to honor the current leases so not much you can do to raise rent until each lease is up.The only possible leverage you have is to put a contingency in your contract that previous owner modifies their leases and get tenant signatures before closing, but why would a tenant sign a new lease with a higher rent?

I will stipulate that we must meet in person before agreeing to enter a lease agreement.

Please note, that I AM NOT saying that any of this is your intent, I'm only relating what I've personally seen occur with deals I've been involved in (note: I've never been the one to use a proof of funds letter in any deal).In times past, when I've seen people pay to use a proof of funds letter, its use came with the stipulation that if the funds actually needed to be drawn down on, they would be used at hard rates over very limited terms. 

If you can pay all cash with limited stipulations you may beat out higher offers with more clauses.

Where Illinois is relaxed on that Indiana has stipulations.