1031 exchange duplex to single family

[Kyle Smith]

Hello BP, 

Hoping some of you experts could weigh in on this one or point me to where it's been asked before on the forums.

I have rental property that I'm planning on 1031x this year. I'm aware of the rules for finding like properties, 45 days, etc.

Here's the catch, I'm also looking to purchase a SFR near the beach and wondered the following: Could I 1031 my current MF units (duplex) into a SFR to be used in the short term as rental property. Then when the time allows (2-3 years down the road) move into the SFR as a personal residence? Would this trigger tax liability at this point? Would I need to refinance?

I'm not trying to do anything illegal, it just seems like as long as I don't want to change the loan terms I'm basically 'renting' to myself?