I'm self-employed and did not know if my business was going to be shut down due to the virus.

If it won't have any effect then don't do it. 

My wife is a realtor and my sons are MLO's and we started a lending company last year :)We do STR's mostly personally with our own properties and self manage all of them.

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.

It’s been stressing me out as I self manage this and my other property where it’s affecting my moods and I don’t like it and something has to change.

Here's a list of non-recourse lenders: https://www.biggerpockets.com/member-blogs/2810/50272-list-of-non-recourse-lenders-for-self-directged-ira-and-401k

Does anyone know when this went into effect?

But, it may not offer the ROI as other locales, and it may not be "fun" like buying in a favorite vacation spot.2 - The highest ROI folks - Self explanatory, will go where ROI is high and/or regulation low.3 - The second home/retirement minded - These people are looking for minimal ROI but want the house in a specific location because they like to use the property and want it to pay for itself.

Option 4: 20% down on 2 to 3 properties Also open to hear other ideas, I'm self employed so getting a lender can be a bit more difficult.