@Guy Idan Highly recommend Mark Kenney with Think Multifamily - his portfolio is 10,000+ units and has had many deals go full cycle - very happy investors. 

That being said, I don't think the bank is going to be sending folks to peep through your window to confirm you live there... but you obviously still shouldn't do anything misleading, hypothetical or not :) If you have utilities or some bills in your name headed to that address, that would adequately show a proof of residence to some capacity. 

The insurance company needs proof that the heating was turned on when the pipe burst, or else we are out the $10k. 

I'm not sure if it's a trick question, but when a seller asks for proof of funds, you provide proof of funds.

You may be buying at the “top” of a market cycle.  

If rooms are unavailable this early in the booking cycle, I believe you chose a poor location.  

There is no proof for this other than a text message.

Most of these hard money lenders require some form of credit/proof of income and a fee for each submission.

Expect to shoulder the burden of copious proof - and even then it may not be granted. 

It has happened for hundreds of years, and will continue to happen, as long as there are boom and bust cycles.