I'm sure he's right that your not ready but screw that. Don't be afraid to take a little risk, make some mistakes, your young. Work hard, don't over think things. Take action. Life really is simple.

So onto your question. Figure out if you actually want this house, for this price, in its current condition. Location good? Size of the place? You like the lot? Those things you won't be changing. If those are all good step two. Make friends with a contractor, work your connections. Get him to go through the place with you. Home inspectors are going to find all kinds of issues but no solutions. Contractor should be able to offer solutions. S/he is your friend helping you out, don't take advantage of them, buy them a beer. If the projects seem doable you need to find money. Your single, young right? Cut costs, Ramen is your friend. Learn to cook it 50 different ways, make it a game, make being cheap fun. Are you paying rent? Move in with your parents, grandparents, aunt uncle whoever will give you a good deal. But these are your family, helping you, so help them. Mow the grass, vacumn, don't take advantage of their generosity. I will guess you'll need between 10 and 20k liquid to move forward. Might need to find some odd jobs to raise cash quicker. Financing, talk about doing a seller carry back mortgage, contract for deed, rent to own. It's been sitting empty and hopefully they like you, work something out. They're friends, make it a good deal for both of you.

Tldr. Work hard, be nice to everyone, ask for help, be frugal, take risks, embrace failure.

Let me know if you need me to go into more detail on any of this, good luck.