Seller Finance Question: P&I Vs Principle Reduction Payments

[Hadar Orkibi]

Hi Guys, 

Im working on possible deal and the seller is willing to finance 85% of the price. His reason is that he doesn't want to pay income Tax or depreciation recovery. (Sold a business and have high income this year)  We agreed on: 5% P&I, 10Y Balloon, and 25y Amort.

My Questions is: What if I suggest to him that we do SAME Amount of PAYMENTS BUT principle reduction payments and Not have interest component. this way i pay the property off faster. Would that way have any "worse" Tax implications on him? 

Thanks In advance for your help!