Avoiding tax on appreciation

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Hi,

Not sure if this makes sense, here is my grand plan

1) Buy few Duplexes/Fourplexes that give cash flow (around 5, and as many as possible)

2) 20 years later with substantial appreciation, use 1031 to buy a million dollar home. 

3) rent for reasonable period, say 2 years

4) MOVEIN to the home, to make it primary residence. 

5) After 2 years SELL. no tax for first 500K. HURRAY!!!!

Any loopholes in the plan?