Then I'm sending it off to a Skip trace company and they return a ton of data. 

A few electrical and plumbing issues were found during the inspection which again had to be repaired (payback for skipping on a good contractor) but we closed on-time and I was out of the deal.

Check out these links:Here, here, and hereBut these aren't helpful as you are looking at options for unpermitted work, so don't expect leniency in not only approval for something the city is merely trying out, but also something that was already completed without any permit approvals whatsoever.My advice is to skip this deal.

@Elva Rinus check out the local meetups in the OC.OCREIN - Learn How to Flip Homes in Less than One Hour (biggerpockets.com)Cash-Flow Breakfast Club - Orange County CA - REI Mastermind & Networking event (biggerpockets.com)Good Investing...

When I started in my 20s and I was able to drink brake fluid and nails for breakfast, I was listening to 3 podcasts a day and analyzing deals from sunrise to sundown.

If you had the funds available, with some cushion, is it advisable to skip the HML and $7-12k cost, and purchase in cash?

I have not proof read this, so I may have skipped stuff in the explanations. 

Examples where this has been done successfully include bed and breakfasts, self storage properties needing 24 hour management presence  with living quarters. 

@Elena Dubinski once I knew about tax liens and had a very basic understanding I took an attorney to breakfast and he cleared up most of my concerns about risks.

To be honest, unless your area has super relaxed laws, I would either negotiate the unit to be vacant prior to acceptance or just skip it altogether.