I'd star with the flooring throughout. Is the wood floor salvagable, can it be sanded? Is there wood under the carpet? or just underlayment?

the kitchen is a good layout for a small house. I would remove the peninsula and if she needs a lot of extra storage, leave the cabinets on the wall. get a small glass top table for dining.

You can repurpose the base cabinets along the window wall where the chest freezer is now.

I would make a barrier between the front door and living space, either with a sofa table on the backside of a sofa facing the kitchen.

She needs to consider the overall location, floor plan/flow of the house, and how well it could work for her. Does it tick all or most of the "needs" boxes on the list. Does it tick anything on her "wants" list? What is the neighborhood like? Mechanical systems in good working order? How much money is potential remodeling going to cost and would it be more cost-effective to purchase another home? Etc etc etc. The cosmetics can come later.

She would renovation the entire kitchen prior to moving in as well as refinishing the flooring. We’re thinking to use the unused space in the current “dining” space in the living room and add floor to ceiling cabinetry to the left of where the entry to the basement is for pantry storage, move the fridge to the right of the cabinetry across from the pantry section with cabinetry and counter under the window to extend the kitchen into the living room and add storage. That would allow the right of the stove to become additional counter/cabinet space and then add a built in bench with dining table and chairs in the addition that you can see from the kitchen with an accent wall and then create a small den space in the remainder of that room by the French doors. Thoughts?

I would not take much space from the living room since there is no foyer nor entry closet. I'd open up the walls between the living room and kitchen and yes use part of the den for dining.

Thank you!