Don't get me wrong people still travel but just not as much volume as when they first come into money unless that is their main thing they love to do.Most small business and medium have gross profit of 10% these days for food.

They have no trash service so they accumulate it in their back deck and they have not bothered to clean their fridge so food is rotting for weeks now (no power means no cold fridge) It is stinking in the house, you can imagine the toilets without water.

Will have 4K a month cash flow after regular life bills are paid (food,etc).What is the best thing to do with that 4K cash flow?.....

You may cook what's in my refrigerator or eat what I cook or bring your own food to cook.

Our contractor is suggesting we leave a small gap of ~3" from the wall to where our cabinets and appliances would come, but our concern is that this would lead to food/water falling through the large crack and being hard to retrieve/clean.

Kudos to you in taking initiative so early!

If all you do is contribute the property to your LLC and then sell it you have to be able to demonstrate the intent of the LLC in taking title. 

Her situation is chaotic and she may be forced to choose food over rent.

At that point you'd have to analyze exactly what you want, do you sell and buy a bigger home for you and your family, sell it to invest in better properties, keep it as rental, keep it as a rental and perhaps get a HELOC or Home Equity loan to invest in another property with the proceeds.Hopefully this gives you some food for thought.

cash in take your huge gain move on.