1031 exchange( 2nd partial rental home)

[Pradeepan V.]

Hi

I have a rental property I am planning to sell and use the proceeds to buy a 2nd home( through 1031 exchange). I know 2nd home use for personal use doesnt qualify for 1031 exchange. However my question is what if if I stay there as well as rent it out( like a duplex or mother in law unit for example)- would this qualify for 1031 exchange - This way I get best of both the worlds. Is it possible at all? Anything to be careful about?