You are already on the right track.  1. 

This means buying a property with at least 2 units and living in one of the units and renting out the others.

You’ll need to use a broker who can get to the specialty insurance companies.  

It is a terrible rental.  1) The rent may not cover the PITI.  

You make more when it's uneven and you can live in the smaller unit.Focus on the asset and the area, as long as you can withstand net negative or breakeven cashflow, and you will gain in appreciation.

$3/day for the fit year and then they’re free?

@Li Li, Since the 1031 exchange will allow you to move into any type of real estate anywhere in the country. 

The more experienced ones know how to drag out the eviction process and milk the landlord for tens of thousands or even extort you to pay them to move out.

Starting with the Buy & Hold strategy is a solid.

With the high housing market in the past few years, house-hacking and living "rent free" is very tough almost everywhere in the country, especially if you are planning on putting <20% down (higher mortgage payments + PMI).