1031 Exchange with Seller Financing - Possible? Easiest structure?

[Kim Hopkins]

Hello! I have a 1031 Exchange / Seller Financing question. 

We're trying to make an offer on a property with a seller by offering him seller financing. 40% down payment. He owns it in cash so he doesn't have any loan to pay off. 

Can he do a 1031 exchange in this scenario? 

Would it just be on the actual proceeds amount (i.e. sale price LESS seller carryback amount)? 

Any tips on how to structure? 

Trying to make this easy for him to say "yes"!

Thank you,

Kim