High Closing Costs- $6000 for sub $100k house????

[Rylan Kean]

Well got some bad news today and I am trying to figure out some next steps. A lot of the properties in my area are sub $100k and I have been looking to flip or buy multifamily rent. Put a few offers in low ball, but finally found a flip I wanted to go all in on. Called my friend, who is a mortgage broker and pre approved me, to find out that for a $65k property it would be just under $6000 closing costs. The justification was that anything under $100k is going to be super high closing costs and seller can only cover 2% according to Fannie Mae... Am I the only one that thinks that is crazy high? That pretty much puts out any option to refinance in the future or make any big profits with any property under $100k. 

Should I just take this number into account or should I hit the local banks? I am having a hard time justifying 10% of the purchase price for a closing cost. 

Other recommendations? I don't have enough for cash purchases yet, but obviously the flip model could get me there soon.