After walking through it, to get it up to our standards we would need to put 30-50k into it right away or asap for renovations on outdated kitchens and bathrooms.

Secondarily, any feedback about using this standard contract https://development.ohio.gov/cleanohio/GreenSpaceC.. would be greatly appreciated.

Here's a good rule of thumb that my custom shower door guy told us on our jobs: With standard thickness of glass ( I believe 1/4" to 3/8" thick) the price was $280 to $380 per every one foot horizontally, not vertically, on swinging shower doors (not sliders).  

If those repair costs to bring the house up to standards are way too high for me and the seller is not willing to come down on price , can I walk away?

I'm a member of USAA and I have never considered using them for anything other than auto and home insurance along with standard banking.Many local banks have easily beaten their rates for auto loans and it looks like home loans as well. 

Especially if the contract has any language about the written contract being the entire contract with no outside contracts (Which is a pretty standard piece of contract language)

There are other Section 8 requirments like filling out the lease to meet their standards, knowing how to fill out the Request for Tenancy Approval(RFTA), and returning the HAP Contract.

As an owner-occupant of a building with 4 or fewer units, you will be eligible for pretty much all of the standard residential mortgage programs.  

a standard lease (maryland realtor lease) does the trick....specifying unpaid water is same as rent of course....

Depends on how you buy but if you're doing a standard loan you'll probably have closing costs also.