Well, for starters, is the house currently occupied?...

If I understood you properly, that's a starter consideration as one enters the industry not an ongoing thing.  

to fix the house to their requirements is financially a non starter - the only options are ignore their violation and derive some rent from the property or let them demolish the property and sell the land and break even.Do they have me over a barrel?

I will not be moving in, so that's a non-starter.

I did pay asking price, however, this property was not on MLS and was one of those "my realtor knew another realtor" type of deals and they knew it would be a great "starter property" for me.  

Well for starters you should always get a copy of the lease, you have no position to argue if you don't.The lease will outline who has the right to enter and for what reasons.

Also good to have some lease renewal froms handy as well as 5 day notices, tenant file folders etc You can order them all individually or as part of a starter kit.

Riku, I'd definitely look into purchasing a starter SFH, condo or multi-unit.

For starters, you have the free informative forums to read and learn about real estate.

If you're just looking for an investment, like you want to build and sell, then high building costs make this a non-starter right now.