Seller Financing and 1031 Exchange

[Nathan Conant]

A landlord wants to sell her single family home to me on Seller Financing.  However she wants to 1031 in a few years into a 55+ condo community.  

Would this solution work?

1.  She seller finances to me this year with a 3-5 year baloon.

2.  In 3-5 years when we refi the house, and pay her off, can she then 1031 into the 55+ condo she wants?  Or is the fact that she sold us the house and kept the note for 3-5 years mean that she can't 1031 at that time?

Thanks for your wisdom!