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

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.

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

The determining factors on which markets to consider investing include: a stable and diverse economy, low property taxes, landlord friendly laws, job growth, population growth and a business friendly climate.

District of New Jersey | Leader of Real Estate Investment Firm Admits Role in $658 Million Ponzi Scheme and Multimillion-Dollar Tax Evasion Conspiracy | United States Department of Justice

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.

Can you qualify full documentation for a construction loan (IRS taxes net for a big loan plus what your housing is today unless you move in with family)?

If you're buying a primary residence, you'll likely be getting a rate in the 5-7% range depending on loan product, and whether you buy down the rate or not (think tax benefits).

So the lease will be higher than the advertised rent, they will be responsible for minor repairs, they are responsible for obtaining the proper licenses and pay all the taxes for their business operation (If you don't do this, you will regret it one day you see a tax bill that you as the property owner who are responsible for), and they required to have a STR insurance policy. 

But that increase can come with a thorny issue: capital gains tax when they file their tax returns after selling.