Everything is good on my end, but at the last minute the seller calls and says one of them - the home is held jointly- is out of town.  

I was wasting time, I held open houses for others, I sat at the front desk taking phone calls, and my fail was follow through.

@Cogit Aretoo I just realized that my server held up my response and it just posted.  

I have rented to attorneys and they generally try to do things right knowing their reputation is on the line and they don't want to be on that side of the table befor a judge (he will be held to a higher standard).  

There are some guidelines to follow in order for "vacation property" to qualify in an exchange as replacement property:According to Revenue Procedure 2008-16 - The purchase of a vacation property or a second home will qualify as replacement property in a tax-deferred exchange transaction if the following safe harbor requirements are met: The subject property is owned and held by the investor for at least 24 months immediately following the 1031 Exchange ("qualifying use period"); andThe subject property was rented at fair market rental rates to other people for at least 14 days (or more) during each of the following two (2) years; andThe investor limits his or her personal use and enjoyment of the property to not more than 14 days during each of the following two (2) years, or ten percent (10%) of the number of days that the subject property was actually rented out to other people during each of the following two (2) years. 

Many of our clients will use one of those spots for a place holder - a property that might be held by a friendly party who would be willing to sell in a pinch.  

For instance, at the recently concluded FUNDING Summit that was held last June, I revealed a strategy how I can buy (and fix) a house for 80% of the after-repair value and yet I can make MORE money than the typical fix-n-flip investor (or rehabber) even though they have to buy (and fix) the property at no more than 65% of the after-repair value.

I had held the property for over 14 years so had been depreciating the asset for all that time.  

Usually the asset will be held in the name of someone in the family with verifiable income.As far as morality, while I personally don't agree with this use of student loans and wouldn't encourage it in any of my friends, it's certainly a better use of student loan funds than pizza and beer.

If that was your intent then you also cannot do a 1031 exchange since the 1031 is allowed on real estate that is "held for productive use in business, trade, or for investment."