Hello,I need to soon relocate to CA soon due to my new job in SF so I will need to sell my duplex .I currently occupy one of the units so I don’t have to pay any capital gains tax on that but the unit I currently rent I will end up paying capital gains tax if I don’t go with a 1031 exchange.

Husband & Wife will occupy 1, Mom the other.  

This’ll be owner occupied for now.

(If the property is homesteaded, the owner is occupying the property and is only renting a portion of the property; the applicant can provide a notarized letter, stating that ALL of these conditions for this exemption are in place, that can substitute this license.)4. 

One of the things I found out is that for anything that is not owner occupied and requires a permit I have to hire a professional contractor due to state law!

This will get even more restrictive for non-owner occupied SF and MF 1-4 units.

If the unit is a multiplex, you can terminate lease for a rehab that is extensive enough that the tenant cannot reasonably occupy the property.  

In fact, in many cases, you don't have to payoff one before you use it again for another property, as long as you meet the owner occupied requirements. 

I am looking to owner occupy for 1-2years, then rent out both units.  

You're not going to find lenders to do non owner occupied deals at 90%.