It isn't something you will be using on a day to day basis to make decisions and take actions.

Generally most private money lenders are going to play a lot more conservative but be able to close faster/make a faster decision on lower risk deals. 

Some have a major decision right to force a sale, some would extend, others may convert to common equity.

(We're aware of the five year look back period for Medicaid eligibilty but it's not a big factor in our decision to do this.)We would get the house appraised so we can document paying FMV.House would be purchased with cash (it's a small home in a rural area and value is low)Inlaws would sign a lease so that it becomes a legitimate rental and we can deduct expenses, etc.

It sounds like you're doing a good job of educating yourself which is great, but you can educate yourself as much as you want, however without a direction or destination in mind you'll never have enough information to make a decision. 

This analysis will actually help you determine how much cash you need for your first deal which will guide your decision for a well paying facilities job.  

If you don't mind, I do have additional things I would like to ask:- Once a get a job and my first property, how do I manage my time with working at the job, planning on my property/other financial decisions and have free time for myself?

And you need to weigh those pros and cons to make sure Section 8 investing is the right decision for you personally.

My investors are friends of mine however and will not be very active as i have informed them that i (as the general partner) will be making all the decisions. 

Massive waste of time and money, my worst decision in my 5 years of real estate investing :).