1041 exchange question here

[Aaron Millis]

Hi BP,

So I know that the jist of the 1041 exchange is that you can keep deferring your capital gains tax when selling properties and buying new ones. I also know I've heard that if you live in a property for 2 of the last 5 years that you don't have to pay any capital gains tax up to 250K if you're single 500K married.

My question: Is it possible to combine the two? So you buy a few properties doing the 1031 exchange each time until you trade up to 4 plex that you fix up on the beach. You live in that 4 plex for 2 years and then sell for a 250K gain. Do you get to keep all of that? Thanks.