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. 

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

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

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.

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.

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.

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.

If, after the first ten (10) days after you take possession of the Rental Unit, it becomes necessary for us to undergo including, without limitation, prevention and remediation in your Rental Unit and/or on the Premises, you will be held financially responsible for reasonable costs thereof, paid as Additional Rent.

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

Definitely there is a lot of opportunity for him to learn a lot from this property if he is receptive to acquiring the knowledge.