The seller will not give you any credits or make any repairs in an attempt to kill the deal.

And eventually rent it out after we build our credit this condo is not to expensive so we could also save a lot, and even buy something else later on,Is it a good idea?

I'm going to have the outside vinyl sided which will be the only cash I have left in the deal.Actual Monthly Expenses:Mortgage Principal & Interest: $380Monthly Taxes: $68.92Monthly Insurance: $63.75Cap-Ex: $95Vacancy/Credit Loss: $47.50Property Management: $50Total Expense including estimate for vacancy and cap-ex: $715.17Rented @ $950 per monthExpected Cash Flow: $234.83Living Room:Master Bed/Bath:Under the cardboard box in the pictures were about a hundred cigarette burns in the carpet...Between the 5 people and 3 dogs living here when I bought it there wasn't a blade of grass in the back yard:Still haven't done the vinyl but it sod does wonders and it only took 1 pallet. 

Thank you all for the great reading and research material- I never would have found this home or a lender willing to work with me and my bad credit without it!

My question is when we go to get a mortgage, will a appraisal for a traditional mortgage give any credit for the warehouse or will it just consider the value of the house?

Read this in "Landlording" by Leigh Robinson:  

Lines of credit on your home or other rental property are another option not yet mentioned.

The membership also gives you discounted tenant screening services (credit score) and they offer a landlord training course called Rent it Right.  

Have great credit and have the money to put 20% down but what's the challenge in that.  

I would begin talking to a lot of your local banks and credit unions to see what they will allow.