Buying 1031 exchanged properties from family members

[Jonathan Billing]

Hi I'm wondering the possibility of buying a property from my father in law who lives out of state. He would be doing a 1031 exchange for a house he currently owns in his state to a house out here for us to rent in WA. We would then like to do a Lease to Own option from him or a seller finance deal from him. 

My question is what would be the best way to do this legally and the best way to structure this. Is this kind of thing possible? If we were do to this and buy the property from him after he 1031 exchanged would he then be able to do another 1031 exchange? 

[Jonathan Billing]

That makes sense. He would be paying all cash when doing a 1031 out here. We would then be renting it from him at market value rents. Hoping to purchase it from him later down the road when he does another 1031 exchange on the property selling it to us to buy a different investment property. 

The idea would be that he uses his cash from his sale to 1031 in our area with plans to rent to us and then sell to us later doing another 1031 of his own when he goes to sell it to us. Is that possible?