1031 Question..
I'm planning on selling my first rehab project in the next month or so and doing a 1031 exchange. can I split up the money into down payments for 2 or 3 properties? Or does it just have to be used for 1 other property?
Next question. I have this friend at work who is upside down 20k on his mobile home. He wants to give it up but can't find financing for a house if he does. I was thinking I might make him this offer.... He picks a house, I use some of my money from the 1031 to put a down payment on it (10% or so) and bump up the interest rate 1 to 1.5 points to create a cash flow, then have him refinance/buy the house from me in 2 years after he has a good payment history on the house. Kind of like the subject to method only my co-worker would get to pick the house and I'd actually get the financing. Any advise on this would be helpful. Thanks. 
I'll limit my comments to your 1031 exchange question. The general issue in 1031 exchange transactions is that you must have the INTENT to hold the relinquished property and the replacement property for investment, income production (rental) or use in a trade or business. If your intent with this property is/was to fix it up and then flip it you will probably not qualify for 1031 exchange treatment. If you have held the property for a while as described above, then you can probably take advantage of a 1031 exchange structure.
Hope this helps.
[addsig]