The tenant wants over 13K to cover stay at a hotel (that only has a small fridge), food for the family, moving costs and storage costs which is about 2x the amount the city expects.

You can successfully and fairly easily manage an STR out of state, however for your first one I think it can be helpful for it to be within driving distance (3 hours or less) and it will simplify filing / paying for taxes and tax preparation.

Are you prepared to be a landlord? 

Also, are you prepared to do foundation repairs if necessary?

As for your down payment, I can’t personally speak to a small business loan…you would just want to ensure you include those payments in your analysis and prepare to be repaying the small business loan and other holding costs during the flip. 

One thing to note, 1 of their pictures is literally just the indentation in the carpet from where a trash can, water bowl, and food bowl always sat.

She is ill prepared to efficiently deal with the $30k of additional repairs.  

I would like to know some extra strategies while they prepare to do so.

It can be done, but if you want to use RE to retire in such a short time, you need to do nothing but Real Estate 24/7 basically.As @Henry Clark so wisely said, be prepared to think way outside the box, and consider changes like moving, less kid sports etc.

Be prepared to lose vendors and recognize when a vendor is too small for a job.