However, we found out that we probably can't be qualified for 1031 Exchange because of our marriage.  

It's taken a lot of cash so I've sold 2 along the way to keep paying for the rehabs.My experience has been that the quality of the product will determine the qualify of tenant you attract. 

Should title of property purchased cash go in one or both names to limit liability and also to optimize our ability to qualify for lending in future using the cashflow?

You'd have to first purchase it from your grandmother which you can do using a rehab loan like the FHA 203k and include rehab costs into the mortgage.Talk to an experienced FHA 203k Lender to see if you can qualify for a mortgage to purchase your grandmother's home.  

My thoughts were since the assisted living home had the potential of making great money then the operator would Willing to pay an above average Interest on a home they did not have to qualify for at a bank to purchase.

As an aside...getting them to waive or demonstrate that you don't have any HOA fues currently due will not help you qualify for the refi any more than you already do.

You can qualify for a crazy low down payment FHA loan and decent interest rates on an owner occupied duplex.

FHA loans are amazing for getting a low-interest mortgage and low down-payment. However, these loans are designed for first time home buyers and were not necessarily meant to be used multiple times.That said, what qua...

My concern comes when it comes to verifying income because I don’t know if I’ll be able to qualify given the current situation.

The total assistance amount available will depend on household need.To qualify, applicants must:Rent housing in the city of Sacramento or an unincorporated area of the county.Have experienced a loss or reduction in wages due to COVID-19.Owe back rent or have an inability to remain current on rent.Have a current household income that does not exceed 50% of Area Median Income (AMI).Not live in public housing or receive ongoing rental assistance.For more details on the program, visit www.shra.org/sera.