(I've subsequently had to evict that tenant because she was playing to many games with getting the rent money to my property manager.)   

I’ve been studying for months now and one question continually pops into my head: How do you implement effective business management systems in order to develop a self-sustaining enterprise (specifically property management)?

But to call it tax evasion is false and reckless and exposes a lack of understanding of the specific statutes and subsequent decades of case law in sec 1031, Rev procedure 2000-37 (the safe harbor reverse exchange), rev procedure 2002-22 (Tenants in Common syndications), Rev procedure 2004-33 and 86 (Delaware statutory trust), and all of the various regulatory guidances we have for using 1031 exchanges in conjunction with personal property, vacation property, primary residences, retirement, and estate planning etc.The 1031 has for many decades been the  method of deferring tax on the sale of investment real estate. 

I preface this by saying, I have a rental portfolio, a retail flip enterprise and a wholesale business.

Would failing to inform the lender of subsequent offers be considered a material misrepresentation?

The loan limits for VA loans vary around the country; $417,000 is the lowest amount and is considered the default amount unless you are in an area that has been designated for a higher amount.You can find the current VA loan limits here:  http://benefits.va.gov/HOMELOANS/documents/docs/20...One important note on re-using VA benefits, especially for low down payment loans:  the funding fee is not small, and is higher for lower down payments, and is higher for subsequent uses.  

I hope to speak with each of them and try to get them on the same page (sometimes I manage to be persuasive).I've done some due diligence work today and discovered that there are no liens, etc. on the home, and that what they may have perceived as potential debt responsibilities is incorrect.If I can get them to "open succession" and subsequently get the house under contract, I think the deal may work out something like this:$165000         ARV (Conservative estimate, waiting on comp info - tomorrow?)

You could subsequently get $5K in capital gains tax free by the offset. 

I admire the aggressiveness, but temper this with a broader knowledge of subsequent processes.

Well they usually only get paid off %'s (ie. 3% on first 100K and 1% on subsequent 100K) so a lowball offer won't really take that much out of their pocket and a sale is better than no sale.