Some of my personal friends are on the list, and I highly respect them as my peers.

I am using a dscr loan. what I cant understand, is why are my closing costs so high. above is the numbers on the refi.

I would highly recommend them. 

Also, consider this copy & paste advice below:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

The combination of high costs and the after-repair value (ARV) frequently leads me to conclude that buying a new rental property is a better use of capital.

This implies renting is initially cheaper than buying and at high LTV, rentals are initially cash flow negative.  

No, I highly doubt it.

This property has some one-of-a-kind qualities namely a nice creek with inbound and outbound waterfalls at each end of the property (its on a hill w creek canyon).I've gotten the septic scoped and certified, well is good, power needs to be reinstalled as property was abandoned years ago.

The bank they are using with that offer is now saying my site prep bid came in way too high and not approving me (so far. still in process).

You are a high w2 earner, The house is worth 110k today, you are buying from your grandma for 60k in exchange for free rent for life, upside ARV of 200k.The costs of owning the house will help provide tax relief on your high w2 earnings, you are buying a great chunk of equity that will pay off in the future, and you and your grandma are doing each other solids.