My plan is go in put in professional management, repair, raise rents.  

I would guess that, unless the value goes down in the next year, you'll probably be ahead by a little bit by holding it for a year.

Setting aside 5% for repairs, left me with $2400, or $200/mo. 

My plan is go in put in professional management, repair, raise rents.

I guess that's why we include repair costs in our monthly expenses

I'm trying to stay ahead of the process by looking for a reputable and trusted home inspector now.

At the point of the repair for damages reaching the $650 security deposit limit, would it have been legal to give the tenant a 30 day notice to leave the property due to excessive damages? 

@Joseph Shaggs i would let the bank know ahead of time.

Should the realtor have given us a head's up she would be out of town?  

If your tenant lives hand to month like many others, I would personally recommend against this because the tenant will be disincentivized from doing repairs or even informing you of major repairs even when absolutely necessary.