However, my under writing due to the recent rate hikes shows large cash negative after a high LTV refi to extract the equity so I am not currently actively pursuing BRRRRS and I find this is true for many of the local investors that were doing brrrrs a few years ago.  

How can I strike a deal where they can still receive some income from the property, but I can purchase the home and make my share and eventually (1-2 years away) own the home and eventually get full profit from this 8-unit property.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

And what I mean is the business is not profitable until you add at lease 100 doors.  

It's a long-term learning process, but an interesting and often profitable journey - best of luck to you!

I live in Sacramento, and have noticed that people are offering either equal or above asking price even for homes that sometimes need 80-100k in repairs and I can't see how they would even make a profit doing that.

$20k/month in profit? 

Section 8 can be a profitable and reliable resource but it is 'their ball, their court' so know the rules first.

I have found 1st lien mortgages to be very profitable.