After operating the STR for the first year can we turn the STR into our primary residence for 2 years then sell and avoid capital gains tax and depreciation recapture instead of doing a 1031 exchange?

For the better part of two decades I've been involved in real estate in some capacity including but not limited to: mortgage & real estate broker, developer, project manager, STR owner/operator/manager, international investor and beyond. 

That's why you are seeing Turbo tax is also not allowing to claim depreciation unit its put in service.But you can claim start-up expenses for your rental property upto $5K on your operating expenses.

Then I would say that the main challenge for you will be finding trustworthy, experienced operators who are going to give you repeat business and who have a track record of successful project executions. 

I own, operate, and live in the state of my LLC but I have clients all over the country/world. 

In 2020, I added wholetails, novations, and double closes to my toolkit, which allowed us to consistently achieve higher profits and scale our operations effectively.

Since I list some of my (very few - I only have 3 residential units and my commercial ones are all managed by others) units every 2-3 years, I forget how to do it, and even standard operating procedures change a lot at that frequency, rendering them much less useful.

This means that net rents (after operating expense or what they call Net Operating Income -NOI for short) has to cover the mortgage payment plus 25% or more.

The “purest” example of cash flow investing is the investor who signs a 10 year lease as a “master tenant” on a commercial building and operates the building generating positive cash flow through releasing the space throughout the 10 years.  

Included the rental of the machine, the cost of the operator, new sewer pipe and rigid styrofoam.