STR to Primary Conversion Pro and Cons? Can it be done?

[Sangam Baligar]

Hello BP Family,

I'm posting this for a friend..
My friend owns a few STRs in Bay Area and has done well for the most part. 

One of his STRs is not going so well and he has spent ~100k on upgrading and making it operable on Airbnb and VRBO..  He also did costseg and took bonused depreciation in 2022. He has nothing left in this property to offset his active income.

Appears this property losing on STR steam and hasn't done well in 2023 and now he's thinking of converting it into his primary. Also, he's been wanting to move out of his current primary and rent that out for LTR.
I believe that would work out ok as he's looking to offset some income from the LTR of his current residence.
I wanted to ask for some feedback or fro/cons or inputs on whether it's a good idea or not. 

Thanks in advance for your thoughts/advice/input.