Can you 1031 exchange and move into the ADU on the new property?

[Stacy Litwin]

This is strange, but we have some funny rules about AirBnB and living on the property, etc. We sold a townhome. We are looking for our replacement property for a 1031 exchange. If we have 300K to roll into a new property from the sale of the townhome, and buy a Single Family House that also has a garage with an ADU over it, could we 1031 into this if we were planning on moving into the ADU? The ADU is technically attached to the main house by a roof that covers the staircase up to the ADU, if that matters. We want to AirBnB the new property that will be the exchange and the new house is definitely over the 300K in value, but I'm not sure how this affects it. Our town will let you AirBnB a Single Family Home, but then I believe you cannot long term rent the ADU which is what is currently happening with the ADU.