Will property qualify for 1031 exchange and can I take some $ out

[Terri Dyer]

We bought a property in January with cash.  We were planning on renting it and had a couple tenants fall through.  Now spring has rolled around and we saw what local houses were selling for and decided since we didn't get it rented to fix it up a little more and sell it.  Will it qualify for a 1031 exchange since we didn't end up getting it rented?

When we do get it sold we would like to take back out the amount we bought it for and the money we put into it (we do not have a mortgage on it we bought it in cash and did all the repairs with cash).  Then just 1031 the remaining profit.  Is this allowed?