There are a LOT of factors in determining if this is a good deal or not, aside from the price and zip code.

There are some specific things you'll need to consider though by doing this type of transaction (Which is commonly referred to as "Sub 2" or "Subject to", meaning you're buying the home "subject to" the underlying lien staying in place).You need to properly disclose the due on sale clause, and what that could possibly mean for the selleryou need to wait 7 days before closing with your end buyer (Texas property code says that when selling a house with an underlying lien you must wait 7 days after giving your buyer an underlying lien disclosure before you can close.

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??