Question on 1031 exchange

[Larry Hucks]

Hello BP family

I am currently putting an investment property on the market with the idea of doing a 1031 exchange. I would like to by an SFR and "house hack" - live in one room and rent out the others. But, I was reading that you cant use the 1031 for a primary residence. How would I go about this? Would I have to buy the new SFR as an investment property and just live in it, or can I buy it as a primary residence and say I will rent it out?

I am asking in terms of the loan itself since a primary residence loan tends to have a lower interest rate, and also trying to not do mortgage fraud (although my intentions aren't to do mortgage fraud, I really do plan on renting the new property, but I also want to live in a room). Does the IRS actually check what the loan is classified under? Who does the actual verification that the new property is a rental? Could I say I am buying the new property on an investment loan and then eventually convert it to a primary residence?

I guess the real question is for house hackers, do you buy the property as your primary residence or as an investment property?

Thanks for any advice or experience in this subject.