1031 Question For Second Investment

[Anthony Fecarotta]

Hello BP,

I understand a lot of 1031 questions have been asked on the forums, but here's my situation:

Purchased my first property with a home possible loan, i'm currently living in it and rehabbing it, i was going to rent it out after 1 year and then move somewhere else, but i won't have the capital to purchase another place at the price point that i want. I ran the numbers and I think after sale expenses i will clear over $40k if i sell next year. 

- So, can i sell this house next year, 1031 it, and purchase a new home?
- If yes, then what happens if i live in the next property for over two years (i.e. will there be any tax implications from the first house)?

 Any feedback is appreciated. i know that the easy answer is to "just stay in your current house for 2 years," but i don't want to live here for 2 years.