1031 exchange into an existing property, then tear down later to build

[Mo Karim]

Hi BP - Lets say you were able to successfully 1031 into another deal and it's a single family rental in a great neighborhood. The house is ok as a rental for now but the highest and best use is to tear it down and build new. You would keep the house for at least a year as a rental and then do the new build. Once the new build is complete, you'd rent that out for a year and sell (do another 1031). Is this possible in this kind of scenario with 1031? I understand the 180 day rule but I'm not sure that would apply in this scenario. Thanks!