1031 Ex Move into upleg and pay myself rent to comply w rules?

[Takako Smith]

I am a novice investor who inherited the business from former husband 6 years ago and looking into doing my very first 1031 exchange. I am considering moving into up-leg property so I can rent out my residence to create more cash flow. 1031 requires "Like-Kind" re-investment so it requires up-leg to produce the return. So, what happens if I move in, pay myself a rent, to keep it "productive" then report as an income to satisfy the IRS? My CPA mentioned it and not sure this is viable option to consider. (benefit from doing this is lower interest rate since owner occupied, and my cash flow) 

Thanks