I know "change of use" frequently triggers major expenses like seismic retrofits, insulation and fire code updates.   

Still haven’t pulled the trigger.

I'm still on the sidelines and working with a realtor but haven't pulled the trigger quite yet.

You may be able to find a local bank that would hold the note if you bought it outright, but anything under $50k and most times under $75k is hard to borrow against...it's just too low for a bank to make any money without triggering usury or State/Federal fee limits like they mentioned.

I think the answer is for multiple reasons: analysis paralysis, bandwidth, or just simply failure to pull the trigger.

Nelson Nash developed the concept in the early 80s but the product the concept utilizes has been around for much, much longer.Since you brought up term insurance (which is temporary w/ no cash value accumulation or dividends), oftentimes a policy will be supplemented by term insurance in the form of a rider that allows one to increase their death benefit such that they can store more cash in their policy without triggering IRS MEC limits and therefore be subject to tax hits.The concept and its value proposition is incredibly misunderstood (and sadly often abused) but the reality is it works.

Aside from the fact that I control my money and don’t pay fees for using it - I also avoid UDFI tax which is triggered by UBIT in syndicated deals.  

Curious if you've pulled the trigger yet. 

I’ve been doing some due diligence on a few syndicated deals recently, but haven’t pulled the trigger just yet.  

You can quit claim the property into an LLC after the fact, but you'll want to be sure that this does not trigger acceleration/repayment under the terms of the mortgage.