1031 Exchange Question

[Dustin Dummer]

I found an interesting deal for a lake home that could serve as a primary home with 2 apartments below. I’m considering purchase options. 

Option 1 - I can sell my primary home and purchase the lake home.

Option 2 - Can I sell a duplex using 1031 exchange to purchase the lake home? Again top floor would be primary residence, bottom rentals. Is this permitted under 1031? This would free up the money from the sale of my  current home and allow it to be rented.