Speak with a tax professional. 

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.

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

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

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

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

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

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

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)?