I specify that it has to be at least 1000 square feet (SF) (bigger the better), it doesn't have to be a 3+BR, but if it's not and at least 1000 SF I can convert it to be a 3BR.

In the meantime, we purchased a home with the intention of converting it into a short-term rental (STR) once we leave.

So, in that vein, you can find a home a builder thought was perfect with the extra spaces maybe 70 years ago and convert them into bedrooms.

(You won’t get the ongoing tax break and you’ll be selling or paying the taxes to cash out.)You convert capital gains income in to regular income. 

I was interested in this deal because it offered the opportunity to convert a single structure into a duplex, maximizing rental income and property value.

This means you retain the tax benefit of claiming active losses now without converting future passive income into active income.4.

Another example is converting the garage into an Accessory Dwelling Unit.

Unit 1 is currently 1B1B and unit 2 is 4B1B, but the listing agent said the 1st unit could be converted back to the original 2 bedroom making the 2nd unit a 3 bedroom if wanted/needed.

In order to benefit from a 1031 exchange to defer my taxes will I need to convert my primary residence into a rental property and if I do, what's the minimum amount of time that I need in order to hold it as a rental to make sure it qualifies for a 1031 exchange?

We are looking to acquire an SFH that can be converted to a multi-unit duplex or a SFH in need of rehab that could be converted to a multi-unit duplex.