While due dilligence would still need done to ensure the quality of the deal (it is in short sale status), I am a newbie and my concern is that even if it did turn out to be a great deal, that I would not be able to get financing for it. 

Ensure all business not related to your current job, is conducted after hours. 

What would you suggest as the minimum price for a house to ensure that there will be a large number of interested section 8 tenants?

Helping my children to see the world, teaching my kids about other/different cultures and ensuring that my kids absolutely recognize how fortunate they are when they're in their little suburban bubble means they will more likely grow up appreciating diversity and having empathy for others -- two things we don't have enough of in this world (or at least not in this country). 

If multiple people are interested, how do you ensure you get the best client while still abiding by Fair Housing laws?

The restriction requires that you as the buyer has "skin in the game" to ensure that the 1st lien holder is not the only one at risk.  

The agent was supposed to check the property and ensured safty.

The agent would be signing your contract, and obligating themselves and their buyer to a contract and are not attorneys, they may need to verify that the items in your contract and ensure things are in the contract that may need to be due to their duty as agents. 5.

I need a few exit strategies so I want to ensure I'm not overpaying, even if it cash flows well.  

It ensures you get clear title and I wouldn't do it any other way, but my experience is extremely limited in this realm of real estate.