Option to buy, then 1031

[Joe Fish]

I'm looking to do a 1031 exchange in about a year and wondered if it's possible to secure the replacement property with an option contract before then, sell & close on the original/relinquished property, then close on the replacement property. The option period would extend beyond the timeframe that I intend to sell my currently owned property. I'm aware of the reverse exchange and how that works, but I would not want to close on the replacement property before selling so I don't think that applies here. I haven't seen this scenario discussed anywhere and would appreciate any feedback on this idea. Thanks!  

[Dave Foster]

@Joe Fish, A lease with an option to purchase it at a later can be a splendid way to control the property ahead of your 1031.  

You can't 1031 into property you own.  But an option, if it's just an option and not a land contract or something like that, is not an interest in the real estate.

Keep the option totally separate from the lease - no % of payments going to the purchase etc.  It is only an option to purchase at a certain price by a certain time and you're good.