Installed Loki on my surface book but when I reboot the keyboard does not work. The backlight comes on if I touch a key but I don't see anything. Should i install an Ubuntu kernel that has some patches or should I recompile current kernel myself? Thoughts?
There isn't a complete solution right now. If you continue with the following you won't be able to use a external screen and also you'll have some security bugs in your system.
Since you mentioned it earlier that updating to the current mainline kernel (4.8) didn't solve your issues you need to install a custom kernel.
sudo add-apt-repository ppa:tigerite/kernel
sudo apt update && sudo apt full-upgrade
sudo apt install linux-surface
That commands are going to add a PPA, update your system and install the stable kernel from that PPA. Then you have to reboot and it's done!