interesting 1031 application to a personal residence

[Mark Ferguson]

I am taking a 1031 course for my continuing education as a real estate agent.  The class just gave an interesting application for 1031 that I was not aware of.

Take an investment property and exchange it for another investment property that you would like to live in. Once you buy the new property, rent it out for at least one year and one day.  After that time period is up, move into the property as your personal residence.   Then use the personal residence tax exemption code and live in the house for at least 2 years.  Boom, your investment property proceeds you exchanged just became tax free if you sell the personal house and stay under the $250k/500k limits.  

Anyone know if this is correct?