1031 Exchange to Primary while converting to rental?

[Jody Des Roches]

I've been unofficially advised this is not OK, but thought I'd ask.

I have just sold my rental property that's all set up for a 1031 exchange (45 days starts today).  I also have my primary residence that I've considered renting out when we move.  Is it possible to invest the exchange proceeds into the property that I already own (refinance and add equity) while converting it to an investment property?

Thanks for any advice!