Income taxes vary by person and jurisdiction.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

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

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

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

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.

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.