There are two things to consider with that:  1) if you decide to sell it, and have shown your house as partially rented on your taxes (which you should), then capital gains tax will come into play on the rented portion.  2) For your next purchase, unless you have a lease in place for the whole home, you will have a hard time purchasing a multi-family as your next live in flip.  

The 70% rule world is a tough, tough sandbox to play in.  

I can't get va or fha financing due to "continued employment" Any advice?

The talks have continually sparked my interest in the subject and I am wanting to move towards investing.

How do I go about putting this deal together and would section 8 continue to contribute to the new payments?

Will continue to study and ask questions.Again, thank you for your help!

This property seems ripe for a value play, but I agree with what's already been mentioned--hard to tell if the current price makes it a good deal.

I wish you both continued success and thanks again for the input!

Or should I continue to let them stay there at the current price without doing any updating/repairs and wait until they decide to move? 

Thanks Judy.Sticking to non-occupied properties for now.Something interesting I found - http://www.npr.org/2015/09/25/443423954/99-homes-a-morality-play-built-on-foreclosures-and-evictions