Use of property purchased using 1031 funds

[Bob Willis]

Hey All - I currently live in Nebraska. I own a couple of properties in Arizona that were purchased using 1031 funds and are being used as rentals (one LTR, one STR). I have held both for a number of years. My wife and I are in the process of moving to Arizona. We are trying to figure out our options relative to where we live once down there. Can we move into one of the houses that was purchased using 1031 funds? Or can those only be used as rentals? If we can use one of the properties to live in, if we stay there for two years can we take advantage of the tax benefits of owner occupied dwelling if we do then sell? I have looked in the forums for the answer to this question, but have not found anything.