Deal seems to cash flow less and less the more I look into it.Rents(under market due to older but decent kitchens and bathrooms): $4,250 total.Mortgage payments including insurance and taxes (earthquake insurance): $2,800 a month.Reserves $800 a month.Water/sewer/garbage: $500 a month proforma...Law mowing: $200 a month.

Verifying numbers is pretty straightforward- check tax assessor info for property taxes, get an insurance quote, contact a 3rd party property management company and see what they'd guess as being a realistic rent income, etc.

My monthly mortgage payment is around $1500 (15 year loan at 3.375%) including tax and insurance. 

Check the crime and schools, state, county and city property taxes, insurance rates, tenant/landlord laws and rental market. 

This will put me at approx 26k for normal financing.So I asked him why is the closing cost so high and he responded:Bank fees are approximately three to $4000, transfer tax is 1% of the sales price, and title insurance is typically 1% of the sales price.Does this sound fair?

However you are fined by the govt for not being on Medicare and insurance companies won’t cover you for expenses that Medicare should pay.  

The loan payment alone at 5% would be $1147, then you have taxes, insurance, maintenance, vacancy, etc to pay for. 

When looking at a property, insure that you are figuring 2% of assessed values regardless of what the current owner is paying.Understand tenant-landlord laws in your markets.

Closing costs for me average 4-5k this includes pre paid insurance and taxes

Insurance, taxes, mortgage, and park fee were $8500.