My question is - Shall I simply not take a chance with her and inform her that I have found discrepancy on her application and her background and just ask her to evict?

@Jackson Pudlo you'll have a better chance of success managing a unit right next door and learn a lot.Versus...Buying a rental in a few years that not near you.One of the biggest mistakes newbie investors make is not paying enough attention to their rentals because they are too busy with family & work.You really won't be able to ignore a rental next door to you!

Have you had a chance to check out any local meetups or REIA (Real Estate Investors Association) events?

Think about your individual chances of being affected.  

And how can we align our approach to meet those expectations and improve our chances of securing financing?  

Most investors will jump at the chance to do this. 

Many municipalities allow appeals, and the savings can be substantial if successful.Pro Tip: Work with a tax advisor or attorney familiar with local property tax laws to improve your chances of winning an appeal.2.

@Zach Denny - I agree - chances are the institutional lender won't be comfortable with an owner-financed 2nd and 100% combined loan to value.

Go direct to seller, learn to source your own deals and you will be successful  Is there Any chance we can connect and build a relationship?

To maximize your chances of success, recommend sharing that and the percent increase in taxes & ins with tenant and asking them what they think a fair increase is.- If they say $0-$50, you'll have to get rid of them at end of current lease.- If they are more reasonable you may want to accept if for now, but let them know you'd be doing regular increases to get the rent more inline with market rent.Too many newbies here will tell you to get market rent or get rid of the tenant.