Between just those 3 items, that's tens of thousands in tax return and lower of the tax brackets as whole. 

At 7.5% your monthly payment is around $1,400 not including taxes or insurance.

So he pays tax, seller finance does not eliminate taxes it just defers them.

Speak with a tax professional. 

The Mortgage would be around $3587/ month including insurance, taxes, Mortage insurance.

What I’m really intrigued on doing is getting a short term rental, mainly because of long term appreciation and I can depreciate the first year and potentially reduce my other businesses income so there would be a tax savings there on top of some monthly income coming in.

This ends up $2K on Line 26 to pay tax.  

Tax Considerations: What taxes should I be aware of for property management services, even if the properties are mine?

In order to defer all tax in a 1031 you must purchase at least as much real estate as you sold. 

4th lowest property taxes, no state income tax, landlord friendly, close to Utah, tech and manufacturing job growth.