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?

Agree with other posters that if you have lost trust in this contractor, even if cost more, you need to cut your losses and find a new one.As to what to do with the existing contact; depends on a number of different factors having to do with the size of the contractor, how big the contract is and emotionally just how upset you are about things.If this is a small contractor then there are likely few if any assets in his company and it is generally very easy to shutdown one LLC and start another one with a similar name so suing them is just a money pit; its not fair but very common.

That's where reserves come in play. 

@Cassi Wischkaemper I may be able to find someone who can do that for a fair price, but I was thinking this is something I can do on my own with my cell phone video camera.

If you're flexible on holding and have cashflow to support it you'd probably be able to make out well...Another play you could rent and invest elsewhere.

That said, Hayward schools are not considered good (compared to Walnut Creek, Dublin, etc.) and that certainly plays a big role in the difference of pricing.  

I also played sports during my college career (swimming), nationally and internationally.

Here's the situation; I've one rental SFR at the moment that cash flows fairly well. 

Really easy to just play the blame game at this point.You might just have to eat it.

I’m close enough to retirement age that I could make this my primary occupation within a few years and, with a little luck, invest on my own - but I like the idea of also investing other people’s money as a way to help grow their capital alongside my own.I’m fairly early on in my research but I am stuck on what seems a straight-forward tax problem.