I think you can't get this credit on an investment property but if it is your primary residence, can you apply the credit on the investment side of the duplex?Would that be something you can use 'twice' if that is the...

Is it possible for me to still pursue my tax strategy with this set up?

The IRS has a “same taxpayer” requirement for tax tracking – if the same person or entity is exchanging, it’s easy.If not, we’ll have to bring in our structuring attorney to ensure the right steps are taken to maintain 1031 eligibility.

I want to start attending foreclosure auctions to get a feel for how they operate before actually doing any bidding. I can never get specifics on when and where the auctions are to take place. The online realtor sites...

And if I do pay taxes do I get to deduct my original expenses from the LA sale?

Also consider the taxes, property management, maintenance, and vacancy when you're calculating cash flow. 

Depending on the property type and terms this can be justifiable but usually reserved for those with ample experience and higher risk tolerance. - Higher and Hard Deposits.

I want to keep my current financial position in these properties for tax purposes.

Hello Murray, Assuming the new owners are interested in selling, you'd want to offer enough to help them cover their transfer taxes, legal/title fees, other closing costs, and possibly their moving costs. 

For the income to switch to Sch C reporting, you also need to offer services similar to that which a hotel might offer such as daily housekeeping, food/drink, and potentially various other amenities depending on how you'd like to qualify.What you describe is simply changing property managers, it doesn't really matter whose name is on the AirBNB listing.