First, the easiest way to run a smaller battery that still meets the needs of your bike is to go lithium - Shorai, Ballistic etc.
Second, do some reading about running your battery right on the swingarm. Many people suggest the physical shocks inherent in doing that will destroy the battery in short order. I'm in the same dilemma at the moment, replacing a small Shorai battery under my seat (kick only XS650) to a larger Ballistic 410cca battery to meet the e-start needs of my 750cc high compression motor (kicking it over isn't worth my time).
I considered mounting it under the swingarm, but am concerned about the beating it will take. So I'm looking to hang it from the frame, but potentially still just below the swingarm.