in the city there is 31 total detached SFR's available on MLS of which over half of them are proposed new builds. in the last 7 days  5 new builds went pending..

What you are proposing with a change in purchase price is a counter-offer. 

But I propose this.

Clearly this is a non starter, however I would have him prepare a formal proposal and run it by an accountant and or attorney.

There are new investment intangibles to be considered when evaluating the investment potential of a property, including the declining value of the proposed capital by not being utilized. 

Many investors are scared to get into California -- and perhaps rightfully so, because I am now forced to attend a hearing this Wednesday at the Capitol to lobby against an ADDITIONAL 15% hospitality tax which is being proposed here in CA statewide. 

I'm just not sure, based on what you've said so far, what you are proposing to them and what they are willing to accept.Also, since it's a multi, you want to have the roof, heating, cooling, plumbing, electrical and sewer all inspected along with each bathroom and kitchen and the foundation.And you want to get a trailing 12 rent roll and a copy of all lease and rental agreements and have language to deal with renter's deposits, among a few things to do. 

Any ideas on what I can propose if they don't want to lose it and I can start covering the monthly payment? 

To do this, you need to take ownership and responsibility for your work, look for ways to add value or contribute beyond your assigned tasks, identify problems and propose solutions.

The BLM is also proposing Goldfield recreation area to get rid of the homeless encampments.