Some do it for privacy but in today's world most of this is public record anyway.  

Out of courtesy for their privacy I have been letting them know ahead of my plans of being on the property.

I don't agree that you have better privacy.

This give you and your family the privacy you desire because its two separate houses on one lot, but allows you to still house hack.

We're looking for something where we could maintain privacy (kids) and some use of a yard (dogs).

This is why I said, you could buy a smaller Condo first, live in it like the lending laws suggests for 1 year or more, then rent that one out and buy your second investment (ie a single family home) that has more privacy than a condo and or is bigger. :) You could also strategize and buy a duplex first, live in it for 1 year, then rent it out, then buy a condo, then a SFH.

As for the 4-plex idea, I don't have too many in my area and I'm about to start a family soon and would like more privacy.

@Steve Tse We carefully share SOME info with owners, but are careful to limit it so we don't have a Fair Housing or Privacy violation

I lose $400 in two months but I gain privacy for two months. 

Master suite offers both ultimate privacy and luxury finishes- Master fireplace, double vanity, separate shower room & a walk-in-closet.