Financial Institutions may ask for proof of this.

They will want to see proof that the problem was resolved.Also, if you are responsible for paying the water on your multi-unit, you should be receiving the bill which will show the water usage.

I am currently working on a REO wholesale, and got stuck when was asked to provide a proof of funds ( at least $ 45K) in addition to a deposit on a property $500.  

I'm sorry but I don't agree with Russell, assuming your Realtor asked for the standard (here is SoCal at least) pre-approval letter and proof of funds, they did their part. 

If you can produce proof of a successful track record doing the kind of investing as you purpose for your fund, you are much further along.One of the problems you will run into in selling the fund concept is that most investors now want more transparency than a fund allows.

Ask them to gather up their current bills and proof of income and schedule an appointment with them.  

I've constructed a few custom sound proof studios and drum rooms so i have a little experience in carpentry.

It's also understandable considering i'm a newbie not to stumble on a bad deal.My realtor also said that many house selling agents are less likely to look at the offer without a proof of funds.

The funding thing I know i have to get taken care...some of the wholesalers wont evn work with you with proof of funds.Has any one dealt with the buying pre/foreclosures in this area?

A cash offer means you personally have all the cash necessary to close in an account with your name on it and can show that as proof of funds when asked by the listing agent.