If you plan to live in the property, you may have a better (IMO) option of using section 121 to avoid cap gains taxes up to $250k filing as an individual, $500k as a married couple.

Its interesting what the county is doing with the new tax on landlords.

Given their proximity to a major attraction like Yosemite, these counties benefit significantly from the taxes generated by STRs, and from what I can tell have no intention of restricting them across the board.

We held as primary for a year and STR for 2 years filing the appropriate tax declarations/forms etc. during each stage.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Yes for example we have (depending on loan) min. 6-9 months required. so even if they sell it prior they still pay interest for that period.

Also, my tax bill was super high this year since my property didn't really require any maintenance last year, and this would be a beneficial write-off as it would buy back time and ensure a quality property.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

,When you 1031, you carry your adjusted tax basis from the old into the new. 

Of course it’s not as simple as it appears.....lots of hidden costs, taxes, insurance, preservation, etc. and much depends on the jurisdiction as to length of foreclosure process.