A nice home that may some day make a bad rental but a good primary home An exchange in to a state without state income tax to save that 10% in state income taxes.  

Keep in mind that accelerated depreciation increases recapture tax (taxed at up to 25%) upon sale, though this can be deferred with a 1031 exchange.

If this property won't cash flow as a long term rental, you might want to sell and 1031 exchange into a more profitable property.

I've exchanged our place with another host by on a 1-1 bases.Host share seems to have an interesting concept of exchange available nights but within 5 days.....so what typically is not rented.

This allows them to focus on their W-2 jobs, family, or preparing for retirement without the added stress of managing properties.If you’d ever like to connect and exchange strategies, I’d love to help.

The first month they were late on their rent they explained they couldn't pay and asked for their security deposit in exchange for the keys.

A “1031 exchange investor” would be someone who’s already selling something and wants to buy something else.

., quoting 91 NY Jur 2d, Real Property Sales and Exchanges § 204).

Start building close to home and you'll have such great appreciation by the time you're ready for the cash flow to be $20k a month you can exchange out of the low cash flow, high appreciation California market to wherever you decide to retire. 

@Randall King If you find the property isn't performing well, a 1031 exchange would defer the tax and concentrate that equity into something that has a greater cash flow potential, like what @Corby Goade said.