For 99.9999% of people, unfortunately the answer is no. 

.); the larger drawbacks of course are lost investment gains in the plan and potentially needing to repay the loan balance in full if circumstances change, among others.

I am considering hosting the rental myself and living next door.Could anyone provide guidance on how to proceed under these circumstances?

And so while this is all personal opinion of some random person on the internet (me), in reality there is not really a financial ROI in doing more than is needed, and unfortunately doing things well.  

As much as we all would love a consistent real estate market it unfortunately doesn't work like that.

Real estate investors are attracted to medium-term rentals to gain the benefits of extra cash flow versus long-term rentals while avoiding regulatory risks, high turnover, and intensive management of short-term rentals.While many investors are now turning to medium-term rentals to build their portfolios, the lending world has unfortunately been a little slow to keep up.

Unfortunately, I do own investment properties abroad that are still financed, so any lender that has experience with this would be much appreciated, the lack of experience in that regard has been a painful, and long underwriting process at first when I bought and then again when I refinanced my home a few years ago...

I was looking to have it convert to a long-term mortgage and eventually cash out refinance to build a second duplex once enough equity built up  Unfortunately that is going to be designated as rural by almost every bank just for the acreage alone.

The anecdote that @Michael Baum is unfortunate but true.

When a property is purchased in a Sec. 1031 exchange, the tax basis calculations can vary significantly depending on the circumstances.