Apparently I have to pull a permit to do this.

A neighbor several doors down couldn't get satisfaction complaining through the local permit office (I was in compliance) and decided to call the EPA. 

It is highly desirable to blend uses into the area thereby protecting the residential character of the area; but not create architectural or traffic conflicts nor permit the commercial development to expand into a regional center of such scope and variety as to attract significant volumes of traffic from outside the neighborhood.Even though I can think of innovative ways to increase the rent and current job market in Bakersfield with plenty of jobs in Oil and gas and agriculture section make this increased rent very doable, but I see that as wishful thinking and when making an offer, I want to be as realistic as possible and I will not hope for any income above fair market value.I have a feeling that most challenging part in real estate is finding the right property at the right price.

Your goal is to obtain the lowest purchase price possible to permit you to obtain the highest gain at the end of the road.

Permit/CO?  

Depending on condition (look up "friable") and local regulations, you might be permitted to take it up yourself; you would then have to identify a dump site that will allow you to dispose of it, and you will have to follow their rules for disposal.

You probably would need to disclose it and my understanding is that if you open the walls you may need to rewire in order to get permits. 

But I need to know where to start for the land purchase, fees, any inspections/permits/fees from the city in order to build, etc.

I bought them at a song and am currently going through the permit process of changing the property from a duplex to a single family residence in silverlake.

We looked at the plat map and figured out the problem. shortly after these people had bought their dream house lots the county had changed the zoning from 3/4 acre to 1 acre and they couldn't get building permits.