Can I use 1031 Exchanges funds as a down payment on Owner finance

[Mike Olson]

Here is the scenario;  I want to purchase 60 acres of land for $300,000 ($5000 per acre) and have an owner who will carry the financing.  It is possible to sub divide off one lot and I already have a buyer who will pay $100,000 ($20,000 an acre) for the 5 acre lot.  The current owner is agreeable with this plan if it works.  Can I purchase the sub-divided 5 acre lot for $25,000 ($5000 per acre), and once closed, immediately resell it to my buyer for $100,000 ($20,000 per acre) using a 1031 exchange.  The $100,000 would go immediately (through the 1031 exchange) to the owner (who is offering owner financing) as a down payment on the remaining 55 acres.   Does this work to defer the capital gains on the $75,000 gain?