Primary Residence -> Rental--> 1031 exchange

[Michael O'Driscoll]

Question regarding when is your property considered an "investment property." Say I have property #1 as my primary residence. I then decided to rent it out. I buy property #2. This is now my primary residence. How long does property #1 need to be rented out to be considered a investment property. Eventually I want to 1031 exchange property #1. Basically how long would property #1 need to be an investment property to be eligible for a 1031 exchange

[Matt Leonard]

Another thing to consider is that you are not taxed on the proceeds from the sale of your primary residence (up to 250k for single and 500k for filing as married). I believe the criteria for that is living in the house for 2 of the previous 5 years. So a 1031 is not your only tax free out.