What will be the best way to structure the ownership for these properties that can provide good asset and liability protection? 

I'm in a similar situation (sort of) and am trying to determine best way to structure RE purchases.

@Brian GibbonsThis is your go to guy for ideas on structuring deals.

I believe that if it is structured like a typical hard money deal, then yes.Note - often, I believe that the portal will set up an entity for the transaction, of which the participants get an equity cut.

Then, I plan to sell it for about 1,400,000.With proceeds, I plan to purchase another rental property(s).Is there way I can structure this so that it qualifies for 1031 exchange?

Welcome to BP TomIf you ever have any questions feel free to ask.NORTHWEST Structural RenovationsMatt Gragg

I am going to start searching BP for some purchase option contracts so I can see how they are worded and structured.

If you can get approved for this loan,  I think you'd be very happy with the structure and how it can help compliment your investment goals. 

Can do a number of structures but ideally either seller-financed or all-cash buys, with or without partners.Looking For: Partners & support network contacts!

The basement also appears to have some structural issues.