I love that it has no state tax to pay-one of the reasons I make it my residence. 

The other post pretty much stated, do not get a place if it does not cash flow.Here's a hypethetical scenario..I can get a cash out refi on my primary residence for around $120k in my pocket (330 total, pay off house at 210 left on mortgage) that would change my mortgage from $1000/month to $1900/month.

Yes it is legal to rent a house you don't live in, to an extent as there is a 270 day occupancy requirement for a permanent resident; which really means that you can only rent it as a "whole house" for 95 days out of the year (I may have those days flip flopped, it may be 275 and 90).

But I don't know what would be a better option with the money.Option 1: Build a Garage with a 2BR apartment on my primary residence property.

I currently do not own a home and rent myself so I see the benefits of locally purchasing a multifamily unit to use as my primary residence and REI.

You can definitely find a nice SFR (Single Family Residence). 

I have my hands full trying to get the neighborhood network established, but with so many long-time residents sharing the same concerns, I know it will be ideal. 

In an area with rising values and fast demographic shifts of what the NEW RESIDENTS wish for them self’s but simply doesn’t exist yet in terms of feel and finishes.

The amount of time it will take me to save a 20% down payment even on a moderately priced property is much greater than the amount of time it takes me to save 5%.Just as an example, I am in the process of buying a primary residence for $265,000.

In April due to life circumstance I bought out my last remaining partner and now am a 100% shareholder but am in the process of dissolving the LLC and doing a quit claim deed to transfer title to my name.Question # 1 does a quit claim deed from a LLC to a personal holder of title affect the 1031 if it is done prior to closing (even though the quit claim deed was filed during escrow)I am trying to purchase a property with the "intent as a rental" though (in over 2 years) we may choose to do a "conversion" into a primary residence and definitely plan to keep the new property longer than 5 years.Question # 2 does the new 2018 tax law have any bearings on this plan.