So in fact he is doing WAY MORE than any traditional agent or broker (myself included) is doing in ways of transparency, disclosure and notice.

I'd include:Development and design.PermitsStreet and walks.Driveways and foundations (for garage and house without basement)Utilities stabs for sewer, water, gas, power, cable And any other factor I'm forgetting.Thank you.

All of those activities wouldn't be in a "traditional" Customer Relationship Management tool anyway. 

Investors are advised to consider more traditional real estate investments and to educate themselves thoroughly before diving into the STR market.

For us residential, it's the traditional lender that feels the pain.However as OP is thinking correctly, the gap or spread between riskless CD and equity investment is narrowing, maybe it's like 3% only at max.However, just think about if , if public interval debt fund like NICHX or Cliffwater can give me 8% why I do need to invest at multifamily equity. 

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

Note that rental losses are traditionally only deductible against rental income; since you clearly have positive passive income, a loss-producing property likely would help reduce that income. 

I think the thing that is being missed here is the Profit First method of allocating revenue to different “buckets” there are banks that do this automatically for you, whereas, with a traditional bank you would manually have to do this.

I agree that you both should benefit by not having agents involved and I would even go so far as to go even lower since you are taking on more risk by not going through a traditional sale.

I also have about $60,000 in a Traditional IRA that I thought of pulling, but the taxes and penalties might be far to great since I am 44 years old, not 59 1/2, but is still an option.