It means you can create a separate unit inside your home.

We are looking to live in one unit and rent out the other. 

Do you have any interest in 2-4 units to increase the units/rents under one tax bill.

We need to show underwriting what your experience level looks like.

Would i be able to avoid capital gains by selling it, then using  a 1031 exchange to buy a multi family unit that i plan to also occupy?

Most venture into multifamily (5+ units) once they can no longer qualify on the residential side.

Those apply to commercial properties, so for apartments, 5 units and up.

I recommend spending a couple nights in the unit so you have the perspective of a guest to notice anything you are missing or need and develop a check list for your cleaners and/or property manager.Your agent should be advising you on all of this and more and have local contacts for you. 

House Hacking:House hacking involves purchasing a multifamily property, such as a duplex or triplex, and living in one unit while renting out the others.

Investment Info:Small multi-family (2-4 units) buy & hold investment in Oceanville.