Mainly because many seconds the rate on the note is a few points higher so greed takes over with no real understanding of the risk..

@McKenzie BaganHi McKenzie,I just sent you a note.

As noted I drank the cool aid on the high return higher risk and for me was not what I wanted .. now all we have is a few top shelf and I like that no calls values hold exit is real etc etc..

@Louis GordonReal estate notes is another name.

But tax wise just here to note if you buy a 4 unit as a primary when you go to sell (if you meet the requirements) only 1/4 of the gain could be excluded under the 121 primary home sale exclusion.

Take good notes, ask good questions and then, and only then, after you have completed a transaction and feel confident, should you ever try and venture off on your own.Think of it like this...... you can drive without car insurance. 

My 46 years in the real property investment field has taught me that almost all wealth in real estate is accumulated through price appreciation of the subject property owned and amortization of the associated mortgage note(s).  

note if we sell the primary residence, it is very likely we will not need mortgages to buy smaller rentals as we would use that mostly.Though I take your point on keeping it. our house was a new construction (3 years old) though so possibly low maintenance risk to keep for a rental. 

Some people only want 10-20% of their outstanding lines/debt balances available while the other 80-90% to be in fixed rate notes.

On another note, just because your offer isn't close, as you said in your narrative, doesn't mean you're wrong with your offer price.