I'm not usually surprised by people's poor behavior but this one hurt a bit.

It's a fairly simple system to figure out, so there are investors and businesses (Mostly flippers) focus on it as a primary deal source, building a system to study properties in advance of the sale and having top bids ready to roll.There is also a fair amount of, let's call it, less than ethical behavior going on.

This is bad for the public and bad for realtors.From a game theory perspective we need to disincentive this behavior somehow or do a better job rewarding good behavior in more sophisticated agents who are competently taking on the role of adviser to their clients, beyond the cycle of market corrections over time. 

Any lender looking at such behavior would question your ability to stick it out with a project, and probably be reluctant to loan you money for your real estate.

I posted an eviction notice as a lease violation, as we do not condone violent and illegal behavior in our properties.

That s/he grossly mislead you or lied to you about a fact or facts to induce you into closing.As others have also stated, ARV is a subjective opinion and as such it may be impossible to prove a fraudulent behavior. 

The primary risk is that of human behavior: Did someone intentionally vandalize the property?

The minimum threshold for ethical behavior is obeying the law.

When I did wholesale deals, I always sold the property for 65% of ARV, minus repairs and closing costs.Personal stuff: I'm married to an EMT who is currently working as a Residential Advisor at a home for people with behavioral problems.

8% interest rates and crazy government behavior that makes economic conditions and investment outcomes highly uncertain