Could be concerns with privacy.  

Determine your side line, install a fence if permitted as well as hedges that will provide a privacy wall.

Check with your privacy laws.  

Did he want the privacy or wanted to do something else?

I have found the 'land trust' to be a great mechanism to hold title, create anonymity (read privacy) and protect/separate all other assets not directly involved in any suit or lien against the subject property.Since the trustee is a fiduciary of the beneficiary(ies) you could have a close friend, relative, yourself or anyone you choose act as trustee. 

One benefit that I've heard of using out of state LLC's would be privacy.

I agree with @Andrew Portnoy and I think that from a renter's point of view, they prefer a duplex over an apartment, due to more privacy, yard, etc., but also the conveniences of apartment living (we offer lawn care, snow removal, etc., things that would typically be expected of a tenant of a SFR, but are difficult to split up at a duplex).

Roommate situation will not be ideal as my husband and I would like some privacy.

You can easily convert a spare room into a bedroom by simply adding a wardrobe ($100 or so at Ikea) and a keyed door for privacy.  

I'd say the same thing if you walked up and asked to buy my house - and I wouldn't waste my time or privacy letting you inside it either.