Can I sell a duplex and use a 1031 exchange to buy my sisters ownership?

Alexander, I am doing my best to expanding my network, as far as providing worth I'm not sure what I can bring to the table other then an eagerness to learn, my idea to to work with someone in exchange for knowledge and experience.     

About to sell my primary residence and would like to invest a portion (through 1031 exchange) and possibly some after-tax amount of my proceeds in investment properties outside of CA.

I do but informally; when you are talking real estate, it is hard to get too precise because you cannot pin down the worth of land or buildings on any given day.

I expect the project to be ~1.7M and am raising ~600k to cover planning and initial costs and financing the remaining 950k (750k/1.7M = 44%).My neighbor is considering selling me their (larger) property for 600k that is wholly owned but has very high cap gains pending.We are both concerned with minimizing fees and tax penalties.They are open to an idea I proposed where they would transfer the property to me in exchange for a comparable position in a LLP limited partnership stake in my project which would enable me to take out a HLOC sufficient (or nearly) to fund the project and buy them out, plus interest, in a chunk once complete/over several years.Another thought was to owner finance with payments to them spread across say 5 years from the added value to the developed project but it seems that muddies the ability to establish an equity line that they aren't affiliated with.Ideas?  

However; maybe someone with experience in turn key will jump in, @Jay Hinrichs to explain more precisely.

I'd also add Watermark Exchange as another site to get familiar with notes.I hope this helps.Bill

Interesting - I took a look at a 4/2 in that precise area (also built in 1917, also 2200sqft), and what turned me off of it was the fact that it was the biggest, nicest house on the street (by a pretty significant margin).  

As the GP, we received more equity interest in the deal in exchange and as a condition for the refinance, allowing our passive investors to fully cash out+profits.   

I get $900, $1000, and $900 in rents after all is said and done.I am set to retire in a year and looking to 1031 exchange these homes.3 questions;1.