Second Property Offer Rejected

I sent in an email a couple days ago with my offer on the Webster house. The house is a 1390 sq ft. 3 bed 2 bath one story house with attached garage built in 1976. Aside from it being dated, it was a great house. Well taken care of. My estimates put the rehab at 15K-20K to get it rental ready. Here are the numbers:

ARV 130K
20K Repairs
Offer Price 76K based on 70% rule.

Based on the above numbers, I made two offers. I did it because I wanted to keep the house in my portfolio and I just bought a house all cash, so my funds were limited.

Offer 1: 70K conventional loan closing (about 30 days). I pay all closing costs.

Offer 2: 80K seller financed with zero down, I still pay all closing cost. Loan would be a 5 year loan at 5% interest. Payments would run about 1500 a month with an option to pay it off before the 5 year is up.

After my wife saw the house, she told me the owners didn't seem interested in a seller financing situation, but I thought I would offer anyways. Both offers were rejected, but he was nice about it. The response was they know the house is worth more and they were not in a position to owner finance. 

Win some...lose some.