1031 condo to 2 unit and live in one?

[Maria D'Aura]

I’m selling a rental condo and looking for replacement property. I found a single family home with an in-law that would be great for us as a primary residence. Is there a strategy that would make it possible to 1031 into this, making the in-law portion my 1031 rental replacement and the main house my primary residence?

My existing primary residence would then become a rental.

[Bill B.]

As long as the rental part of the property is worth as much or more than you net from selling your property. Imagine the 2 buildings are 2 separate properties. If the rental portion would qualify as a stand alone property you’re fine.