1031 Exchange Grandma's House

[Jim Sestito]

Situation:

Grandma is moving out her longtime home in Foxboro Massachusetts a suburb 45ish min south of Boston.  

It is a 3 BD / 2 1.5 BA House with (market rent $2,300) an attached 1 BD 1 BA in law currently renting for $1,000 / mo

She has no debt on the house.

The home is already in an estate featuring my mother and her 2 siblings.

The home is dated, on a busy, but in a desirable town / school district.

Zillow Estimate 400K... I think it would go closer to $375 ... her tax person estimate 80K wack in taxes if she were to sell.

Enter 1031 Exchange ?

With all data above - looking for thoughts on using 1031 tax exchange to trade up for another investment property to keep the wealth building asset in the family for generation to come.

Since a 1031 must be done with an investment property this would require us to rent the property (the main house and the in law) for one year.  

Any knowledge on the subject would be greatly appreciated.

Best - Jim