Can you live in a 1031 property if renting or set up a business?

[Dean Chigounis]

We're currently living in Maryland but are eyeing property in CA. We likely won't be able to move there for another 2-3 years but have found a house we like. We have other rental assets here on the East Coast that we'd like to transfer into a CA rental property via a 1031 in CA and rent out the unit for two years. After those two years, we'd like to move to CA and occupy this rental property but we're concerned this would disqualify us from counting it as a 1031. Here are my two questions:

1) Can we occupy it as residence but rent part of the house out to a relative so as to still have it qualify as a 1031? and...

2) We currently run a business here in MD from our residence. If we do the same with the CA residence, will this now qualify the CA property as a 1031 since it's acting as a business hub and not just our residence? 

Any info would be greatly appreciated. Thanks,

DC