How to transition INTO a 1031 exchange?

[Wojciech Grajewski]

My Goal: 

- Purchase a Multi family house in the DC area (inside of DC or in Virginia or Maryland) 

My Situation:

- I own a Single Family Home, which is my primary residence, that I purchased in 2016. However, I have never lived in my home since I have been stationed in Europe for 5 years. Because I have NOT lived in my house IF I go to sell it right now I will pay capital gains tax. This is because I do not meet the IRS requierement of living in my home for 2 out of the last 5 years. As of December 1st 2021 my house will be paid off. Purchase price was $225K ... current value $475K-$500K. 

Question:   

- How do I convert my primary residence to an investment property to eventually do a 1031 Exchange and purchase a multi family?  

[Joe Splitrock]

@Wojciech Grajewski you never lived in the property, so it was never a personal residence. If you rented the property, then you should have shown income and depreciation on your taxes for the last five years. Is that the case?