Looking for my first small apartment complex ($1m-$2m) and just can't seem to make the number work out. 

Most lenders are offering loan mods and other workouts.

I appreciate all the advice, the seller and I are sitting down next week to workout all the details. 

If this one doesn't work out, I feel confident you will find the one that does.

The cycle will keep on going - fresh batch of smarter people coming to California and forcing many poorer locals (by California standard) out to another state, while the net population keeps increasing.The pandemic may have changed the equation with the advent of reliable remote working, but I doubt that the most innovative companies in the world (which are based in California) will move their core mission-critical work out of California anytime soon. 

Are there any ways to mitigate risk if the deal doesn't work out so that I am not left with the lawyer's bill? 

Even in the worst of times we found that landlords are willing to workout payment options due to circumstances (loss of job, covid etc.)

Again, depends on how well you're connected and how much time you're willing to give, and something will work out.

I'll see how move in fees work out my building in Chicago.

If your 4-unit search doesn't work out you could house hack a legal 2 flat with with garden and/or attic units as a compromise.