1031 Exchange a Rental into a 2nd Home?

[Garrett Hollenbach]

Hello BP, 

I want to 1031 exchange a Long Term Rental Property into a Beach Condo. I want to buy the Beach Condo as a 2nd Home so I can get a lower down payment. Can I 1031 Exchange a Rental into a 2nd Home? 

Reason for Question: 

I have enough equity (without paying cap gain tax) in my rental for a 10% downpayment on a specific beach condo I want, but I don't have enough equity for a 20-25% downpayment on that same specific beach condo I want. If I simply sell my rental and pay cap gains tax, I will not have enough cash for a 10% downpayment on that beach condo I want. Hence my question above. 

Thanks 

[Carlos Ptriawan]

Quote from @Garrett Hollenbach:

Hello BP, 

I want to 1031 exchange a Long Term Rental Property into a Beach Condo. I want to buy the Beach Condo as a 2nd Home so I can get a lower down payment. Can I 1031 Exchange a Rental into a 2nd Home? 

Reason for Question: 

I have enough equity (without paying cap gain tax) in my rental for a 10% downpayment on a specific beach condo I want, but I don't have enough equity for a 20-25% downpayment on that same specific beach condo I want. If I simply sell my rental and pay cap gains tax, I will not have enough cash for a 10% downpayment on that beach condo I want. Hence my question above. 

Thanks 

 As far as I know, everyone is doing this for 1031 cycles when we near retire.