If it were to actually REDUCE costs, than efforts would be focused to INPUTS, to LOWER costs which lowers price.

And ideally, I am perfectly ok with managing the properties on the side of my w-2 job with my brother, but my goal is to get enough cash flow for myself and my brother to be self employed, and hire property management and any needed employees to reduce our workload as quickly as possible, so we can continue to expand into other investments.

Of course, your numbers for management fees, CAPEX, etc.. will reduce the gross number. but it should still be positive (CAPEX on a new build should be very low).

The income, plus the guarantee from the property management company reduces my risk greatly.

A 6% seller concession sounds high, so reduce that or raise the price in your counter offer if an appraisal will support it.

I would appreciate any advice or suggestions on how this figure might be reduced or if there are any terms that could potentially be negotiated.Thank you for any assistance.

Keep in mind long term stays will significantly reduce your page ranking on Airbnb unless you are actively updating the listing to keep it fresh as it won’t come up in search results since it’s booked.

Other risk-reducing factors—if the note is collateralized or includes features that reduce the element of investment risk, the note is less likely to be deemed a security.ericperkinslaw.com/when-does-a-private-business-loan-transaction-trigger-securities-lawsv/

My thought is choose a higher income, high quality tenant especially in CA and don't listen to any sob stories (not 100% foolproof but reduces the risk). 

This approach helps reduce your vacancy loss.Hope this helps.