Question about 1031 Exchange with Related Parties

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I am a first-time homebuyer looking to buy a $200k home with my wife. We think it's possible for this home to get picked up soon, so we would like to move on it pretty quickly.

My mother owns a rental home that is currently valued around $165k that was purchased in 1994 for $35k. As she is approaching retirement, she no longer wants to manage this rental property on her own, and we were instead thinking that she could pay off my mortgage, and then I would enter a "rent-to-own" agreement with her. This way, any interest I pay would go to her instead of a bank. Additionally, we were also interested in seeing if she could do a 1031 exchange for her investment property in order to avoid a capital gains hit, which would be quite significant given the cost basis in the home.

Does this sound like a good strategy, or is there a better way we can go about this? What kinds of things should I ask my mortgage broker (do I need to ensure that there is a clause that allows for prepayments or a 1031 exchange down the road)? Would this arrangement run afoul of related party restrictions? Since this is my first time buying a home, I am still learning a lot about the homebuying process, so any help is appreciated.