1031 exchange question

[Terone Johnson]

Hey Everyone, I have a situation that I’m not quite clear on if we are able to make work with a 1031 exchange. Loan officers, agents, and investors that have dealt in 1031 exchanges in the state of California please do feel free to drop your knowledge. So the situation is this. My father in-law wants to invest with me and my wife in a new property (more like a live in flip but not a crazy rehab) that we plan to move out of in about 2-3 years and use as a rental partnership property. His half of the deal he is looking to sale a current rental he has and 1031 those funds into this property We’d be buying together. The caveat to this is we want to use this as THE down payment for the loan we’d be getting on the property. Is this doable? So for example see below. Purchase price say $600,000 We have to put down 10-20% on a new $600,000 loan. He would be looking to just roll over around $300,000 and let that stand as our down payment on the $600,000 loan. Is this possible? Any suggestions on how we could make this work? Thank you guys for all your help ahead of time!