- Should I ask for proof of funds before I engage?

As long as it isn't for their personal purchase.Per RCW 61.34 a “Distressed Home Consultant” does not include: A financial institution; a nonprofit credit counseling service; a licensed attorney, or a person subject to chapter 19.148 RCW; a licensed mortgage broker who, pursuant to lawful activities under chapter 19.146 RCW, procures a nonpurchase mortgage loan for the distressed homeowner from a financial institution; or a person licensed as a real estate broker or salesperson under chapter 18.85 RCW, when rendering real estate brokerage services under chapter 18.86 RCW, regardless of whether the person renders additional services that would otherwise constitute the services of a distressed home consultant, and if the person is not engaged in activities designed to, or represented to, result in a distressed home conveyance.   

This way, you can engage directly with individuals and gain insights from their experiences.

Transactions conducted or attempted by, at or through the bank (or an affiliate) and aggregating $5,000 or more, if the bank or affiliate knows, suspects or has reason to suspect that the transaction:a. may involve potential money laundering or other illegal activityb. is designed to evade the BSA or its implementing regulationsc. has no business or apparent lawful purpose, or is not the type of transaction that the customer would normally be expected to engage in, and the bank knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction.

People looking to engage in this way can go to FB, reddit, etc. or the comments sections of their favorite 24-hour news channel. 

 #1 has me engaging a lot less lately.  

They knew the furniture and fridge wasn't theirs, so what they engaged in was likely felony theft depending on your jurisdiction.

First, choose your location, which defines the long term characteristics, including:Whether your rental income will keep pace with inflation.The total amount of capital required to reach your passive income goals.Income persistence - How long your income will last.Next, choose a tenant pool with a high concentration of what I call good tenants.Has stable employment in a market segment that is very likely to be stable or improve over timeHas a credit history with which you can evaluate the likelihood that they will performPays all the rent on scheduleTakes care of the propertyDoes not cause problems with neighborsDoes not engage in illegal activities while on the propertyStays for many yearsOnce you choose a tenant pool, select properties that your target tenant pool is ready, willing, and able to rent, the process is illustrated below.

Well since your the only one who mentioned it  to me that is by far the most important factor .. all the rest is just normal real estate due diligence and if one cant do it themselves they can engage someone to do it for them.

There is a huge push from the White House to close tax loopholes and you can sure bet that by engaging international investors you are in fact making yourself and your company a target for audit.