Let’s say they provided it for 100% free retail Buyer profits in exchange for a percentage of your profit.  

Has anyone ever done a 1031 exchange from an investment property into a primary residence or is this even possible?

I look at exchanges of ideas only on here.Between us, best is to have some money in both especially when interest rates are high.

Also Im willing to do some free leg work in exchange for some mentoring!! 

In my nearly 20 years of representing landlords and property management companies, I have advised against allowing tenants to perform services for the landlord in exchange for rent reduction.

You can offer free rent in exchange for specific duties.2.

But I wonder if it would be better for me to sell it and reinvest the $100k into other properties through a 1031 exchange.

@Brandt Tingen  we have a timeshare, and it seems like the Poconos are always able to be exchanged there, where as other places are really hard to get into and always booked up.

What I take from the stories here is that OP's friend's parents transferred a house to a lady in exchange for taking over the payments.The lady stopped making payments and filed for bankruptcy with $7k left on the loan.

Almost everyone within the commercial real estate investing realm shares a common misconception involving 1031 exchanges.