The down payment to acquire this sub to is $25,000. so you give them $25k, you take over a $70k mortgage and they are going to pay $165k in a few years - if you will not do this deal send it to me I will do it. 

Proceeds could be reinvested in better-performing assets across multiple doors.Our goal is to build appreciation over cash flow, acquiring 1-4 doors/year to allow my wife to retire by 50.

Or, acquiring in satellite markets at sub replacement cost values.

What kind of funding can I acquire to develop this property?

You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% FHA with a few exceptions.

Now that that’s done I am looking into use the rest of the funds at a foreclosure auction to acquire my first investment property.

Quote from @Stuart Udis: The Philadelphia Housing Authority (PHA) recently acquired a 360 unit 12 story multi-family building for $24M and  a local news outlet  reported on the building.  

Thanks River, I'm acquiring using creative finance, but i plan to remodel a bit, then keep this as a LTR

Acquiring multifamily buy/hold rentals to establish cash flow as passive income. (1 within the next year, 2 more the next year, 4 more the next year) Find my capacity to hold and manage before relying on property management.4.

I would generally agree with the other posts from @Jonathan Greene, @Drew Sygit, and @Danny Gonzalez, and @Caleb Brown, but something I think would be helpful for you would be to share the profile of a type of property, price point, and the amount of rehab you're willing to do (given your mention of S8 properties) that you are interested in acquiring.