I can not remember what the cash flow numbers are, but the mortgage will be about $1500 with insurance and taxes, and my rental income will be $2650.

Should be able to in terms of your mortgage.

I learned that in order to use the VA home loan for a multi-unit property you need to have 6 months of mortgage reserves in the bank. 

The rental calculator here on BP uses a traditional mortgage, and obviously seller financing isn't quite the same. 

A traditional broker is usually cheaper than a flat fee broker on a month to month basis but more expensive on a per deal basis with the agent/broker split.  

Reason being is that I will be in school for the next 2-3 years(10-20K rent), I can add value/fix the house while I'm living in it, instead of paying rent I can rent out the other 3 rooms to my friends at school (mortgage payments/free living/profit?)

Absent some special circumstances (not likely considering there is a $0 or low mortgage balance), there is literally no incentive to sell pre-auction... the auction company has a guaranteed sale and the owner knows that participation will be great because the property WILL sell on auction day.As a bidder, hope for bad weather.

Then once we get everything rented we would be getting a mortgage to get our money back so we can move on to the next deal.

I had my property in an LLC and then when I wanted to refi and take cash out,  the mortgage co. said if you haven't taken it out of the LLC at least 6 mo. prior to the re-fi, you won't be able to take cash out. 

Also know there are mortgages that will include the "repair" cost and appraise after repair but I know near nothing about them other then they do exist out there.