By adding a shower and moving the sink in the first-floor bathroom, I created a more functional space.

If I recall correctly I remember one program here in Houston had a 20-year requirement of you living there and if you move out you pay the loan back. 

I hate to think of the confrontation that would happen if I pull up in the driveway and find somebody trying to move into my house.

That's why it's a smart move to obtain estimates from various sources, not just the major players like Zillow and Realtor.

Ex: waiting for rates to come down and refi can be included in your list of plans but you don't control this.Think along the lines of move in and turn into a primary, sell off a property, 401K loan, pick up an extra job, etc...

Another thing to consider is after they move-in, how will you handle rent collection and maintenance. 

Darryl Lin , I am an investor in the Hesperia market for about 3 years and got few SFR that I am renting, the high deserts is a growing area , although CoCr is around 5-6% but you are betting on future appreciation , LA and OC Market is over saturated with renters , many of them can’t afford rent anymore , so many are moving towards the east , 15 years from now , homes should value in the $500k ( my opinion ) think of it this way , a river with over flown water branching out of its track.

I simply want to make it a little more explicit:For those investors who may be confused, 1031 Exchanges and DSTs are not competing products or strategies. 

I would move the goalposts from the one you mention, to simply pay off house —> use the equity to buy a rental house, use rents to pay down line, buy another rental with the line and use rents to pay down the line…rinse and repeat.  

Just wanted to comment and say that I'm moving to the Miami area this summer so am new to this market.