But, that defeats the purpose of using it to fund down payments on rental properties if I plan to move out of my principle residence in the neat term (within a few years).

You could have them withdraw and wait until the contract is up but I think that defeats the OPs purpose.It is a contract like anything else.

I believe you can have LLC as property management and GC but it kind of defeats purpose.  

Kind of defeats the purpose of having an answering service.

Putting a down payment of 20% defeats the purpose of the VA loan.

If you come here with a defeated attitude you will fail.

Trouble with tenants, trouble with attorneys, etc. trouble costs money and defeats the purpose of REI.

Anything less, you're just hurting yourselves, defeating your goal! 

We've explored the idea of a 2/2 duplex and converting it to a SFH while we're there, but that sort of defeats the purpose.The issue we're running into, like everyone else, I'm sure, is the market being so strong that even houses needing substantial work are selling at the upper limit of what they'd be worth after renovating.

A fix n flip would defeat the purpose of the 1031 which is to defer tax on investments you intend to hold.