It's 6' x 10', which I'm told is the smallest legal size (it's listed as such, though I can't locate the code for my county) though no closet?

The title of the post says "unlicensed activity", yet the code reference talks to the right of the "Department of Safety and Professional Services" to demand documents in it's investigation, nothing about real estate and nothing about licenses, this agency regulates all professions.

So I hopped back in my car, waved goodbye to the street pharmacists, and proceeded to property #2 across town that this same wholesaler had sent me.This is where things got rather interesting.The assistant tells me on the phone that there is a lockbox on the front door and gives me the code so I can get inside.

These will be necessary so the building dept. can determine if your planned work meets code or not.

One of my best sources has been the gals at the water company, and city code enforcement officer.  

But, according to the LA Zoning and Planning code, you may actually be wanting to convert the home into a "boarding or rooming house" which would require that the residence be zoned as such.

Typically the home search sites are using IDX or RETS feeds from the MLS.Theres a lot of advantages with the using the actual MLS, including: you can search for properties with much more search criteria, search for comps more effectively, get lockbox codes so you can see the property, set alerts so you get notified immediately when a property of interest hits the market, and see the actual status of properties.

Still being new to investments, I still haven't purchased a property, I want to know if this violates some sort of investor code of conduct and how would a bank even find out??

I see that you're in California; do you happen to have any recommendations for a CPA thoroughly familiar with the code regarding real estate transactions?

It may or may not offer limited liability as provided for in the agreement.An agreement isn't necessary as much as a settlement statement showing the assignment fee that must be accounted for as under tax code and real estate settlement procedures, the settlement agent will generally take care of this as an expense paid out of closing if not paid at settlement.Any contract is assigned by endorsement, much like you endorse a check over to another payee.