1031 exchange involving a family member

[David Lock]

Good Afternoon,

I wanted to get some more information on performing a 1031 exchange when a family member is involved with the replacement property. 

I am selling some land, and buying a 75 acre family farm which has a house and 5 acres within it, but on its own separate legal description from the remaining 70.

I am trying to buy out their debt and help push them into an easier retirement while inheriting and transferring the property out of their name and into mine at a discount. 

Its helping them- putting them at ease knowing if anything ever happens to them its all taken care of. It helps them in knowing they are debt free, and it eases their financial obligations for the next 5 years heading into retirement. 

It's helping me collect enough replacement value to execute the 1031. It's helping me to walk into family earned equity. 

The question would be this: Can I buy the house and 5 acres for what its worth, buy the 70 acres for a discount, go through with the 1031 and then rent the house back to them as a rental property? I've heard mixed opinions on this, I'm trying to see how much of a red flag if any that creates. 

Any information would be greatly appreciated.