Update: I figured what one of my problems are atleast I think. I’m pretty sure the floats are stuck, it seems to have all the symptoms of that. So I am going to get the worked out as well asa new seal where the carb mounts to the engine as I think as those get old they can start to leak air. Going to service petcock to bc it leaks. I also need a new air filter but all I can find so far is a $30 that comes with the mesh cage that I don’t need. 

I think you'll find the genuine Yamaha filter is still available . Probably more expensive than $ 30 ,
but many people have found the Unifilter overly restrictive , so I'd go OEM , even if you have to pay more .

Okay, I found the OEM one today and will order that but it is only $14.99 on Yamahapartshouse that is the element air cleaner .  On the note of OEM I am buying a new intake manifold and am wondering if I should buy that OEM/NOS or an aftermarket one.  I can't find too many of them that arent NOS so I may have to go that route anyway.

My carb was leaking gas out of the bottom and the bike was not starting so I figured the float was stuck. I took the carb of now and I tested the floats and they float like a boat and everything else looks good, I am going to change the O-ring on main jet though.  The needle valve also appears to be in good working order. Is the float arm supposed to look like this when holding it upright?   

I can't remember how it looks off the top of my head, but I do know it's possible to install that float arm upside down and the bike runs much like what you are saying. Don't ask how I know....

haha I know the first time I tore into the carb I briefly had it upside down but I am pretty sure this is the right way or else I think the needle valve would be able to fall out.  I am wondering if maybe the tab that stops the arm is bent and it is allowing gas to continuously enter.

Take another photo with the float arm pointing upward . Then we can get a look
at your float level adjustment .

Heres a few orientations 

That setting shouldn't be dumping fuel out the overflow pipe .
Either the needle and seat is worn or there is dirt or something preventing it
shutting off the fuel . I'd just replace it myself .

I am planning on replacing it. Just wanted to make sure that I wasn't missing anything obvious as I am pretty new to this.  Is it the valve seat assembly or the needle valve set?