1031 exchange and partner with a family member as TIC.

[Thomas Chen]

We are selling our rental property and plan to use the entire proceed to purchase another property through 1031 exchange.  Our idea is to partner with our son and secure a loan to purchase a residence in which his family will live and pay us a monthly rent based on our % investment and fair market rent.  We retain our share during this time as tenant-in-common until he decides to sell the property down the road. Is this allowable under IRS 1031 rules? Is it necessary to use a real estate tax lawyer to structure the exchange deal or a regular 1031 intermediary will suffice.  Thanks very much,  

[Jaysen Medhurst]

@Thomas Chen, the part where your son is co-owner and the tenant might get sticky. @Dave Foster is one of the 1031 ninjas around here. If anyone can guide you through this, it's him.