The seller is open to seller financing, which presents an incredible opportunity to grow without traditional bank financing.

it also means their interest rates change with the Bank of Canada rate. 

In this manual (which I assume could be modified to provide to tenants) I include all the financing information (which you would not include for tenants) bank accounts, mortgage accounts, payment information, and mortgage payoff), a list of the contractors, what each contractor does, a list of upcoming planned or necessary repairs, and a copy of all leases associated with the property.

Bank Lessons learned?

You could see if there are any local banks that would do a HELOC(tough to find).

Payment to the bank is $4,311 (includes escrow/insurance), total monthly rent $5,600, which leaves me roughly $1,300 monthly after expenses.

Most people don't qualify for that relationship.The seller financing will not show up or affect the credit score.However, when applying for a loan at the bank or especially a Federally Guaranteed loan, they ask on the application for ALL Loans, whether  or not it shows on a credit report.

I had a local bank provide a 1031 without fees. 

I may be misunderstanding your question.In an "assumption" (it's an actual banking term with a definition) the bank takes you though the same hoops as if it's a new loan.

Just like any bank..