luxury cabin, 3100', 4/3/1, nice finishes including spa and sauna, in high fire risk area with total property value ~$500k with CA FAIR was just over $5K fire only. 

To markets where you’ll gain long term tax free wealth. 

What sorts of questions can I ask her to learn how much risk this is? 

You are only adding complications and costs with the LLC with no upside  This is all assuming there’s been almost zero appreciation and you shouldn’t sell tax free while you have the chance. 

How free are you to do other things in your life?

For a while, a truly irresponsible group of new investors were joining the forums, thinking they should pursue extremely dangerous strategies that put themselves and the people they were buying from at risk. 

one truism I think for rental real estate is returns and price points are very much risk adjusted highest returns lowest price points  biggest risk.. smaller cap or return and prime location least risk..

That (and insurance issues) are two big risks.

Small potatoes to risk family.

However, if you believe the market could recover within six months and you're willing to take on that risk, waiting might yield a better return.