We arranged closing during a slower period of time & had him leave everything (furniture, inventory, guides, etc.) literally bought it & could start taking booking the same day.

Perhaps....but   the person relocating to any given market and who has to make a purchase in a finite period of time is generally the least likely candidate to get a great deal on the purchase, meaning the appreciation is even more important. 

You could do a full MTR during the period you're gone, but for me the best and easiest way to go would be to just rent the other rooms in the house as a LTR. 

typically with seller finance there would be some period of monthly payments and then a balloon where you pay off the balance in full. 

You have to give a time period for him to fix or "cure" these violations.

Your personal loan has a 5 year balloon period.  

There are some buyers that are just a complete terror during warranty periods with expectations that are not at all aligned with the purpose of a builder warranty.

We also have shorter seasoning periods than most for cash out.  

I would be buying into a sellers market in almost any Albertan city.Alberta also worries me as it is known to be super volatile for short periods of time and then sit dormant for up to a decade. 

Renting the home does not void eligibility for the exclusion but does require you to account for depreciation recapture from the rental period.