1031 exchange scenario

[Lauren Alpert]

I’m debating on selling my rental property (4plex) and utilizing a 1031 exchange to funnel the proceeds into a larger property (10+ units) to scale my portfolio, and retain some of the proceeds from the sale for future use. It would go something like this.

Proceeds from the sale would be about $600k. I’d like to take $500k and use a down payment on a $2mil property. Take the remaining $100k and save for future use - I lived in one of the units so I wonder if it would be possible to get a primary residence tax exemption for this amount?

Any feedback is highly appreciated.