Finally, certain types of property are specifically excluded from Section 1031 treatment.

It further goes on to state that if there is a case of discrimination brought, and you do have nongovernmental occupancy limits, they will determine id it is done to unreasonably limit or exclude families with children (protected class).Of course, this is federal and your local laws may differ, and in fact, there is some states that have laws making it illegal to set your own occupancy limits.

As a "sublet", some policies may exclude you.

Currently, you can exclude up to $250K of capital gains on a primary residence if you own it and live in it for 2 of the 5 years prior to the sale. ($500K if you're married and filing jointly.)

I could see that being an issue if you're using the appliances in some sort of commercial kitchen application, but I personally wouldn't read that to exclude their use in residential rentals.

Monthly payment looks to be about $1500 (excluding only utilities).

@John Newburg, whatever portion of your primary you elect to utilize "for business/tax purposes", be mindful that the same portion will be excluded from capital gains exemption, when selling your primary (afaik).Something to think about?

I rent out my current home with my two brothers and I pay $350 in rent (excluding utilities) so I average out to $450 a month.

If you don't have a loan on the property, you can choose to exclude named storm coverage. 

Following the rules will allow you to exclude a portion or all of the gain after a certain period.If you are not interested in taking the time to do the investments yourself and following all the rules - you can invest in with a syndicator whose fund is set up as a qualified opportunity fund.