6 Family to 2 Family - 1 Unit Owner Occupied - 1031

[Ariel Cohen]

I am working with a seller who is looking to sell her 6 family property that she is living in and purchase a 2 family house where she will occupy one of the units.

Assuming the 6 family property is sold for $1,500,000 and she purchases a 2 family house for $750,000 can she use a 1031 exchange to go from the 6 to the 2? 

If she agrees to seller finance part of the transaction to defer the taxes on the cash she would otherwise receive, can she use a combination of 1031, 121 & installment sale?

I am trying to help the seller with the best possible structure that would work for both of us.

Thanks.