I assume the buyers inspection and financing contingencies have already expired?

The competition is cash offers, 10's of thousands over asking and/or appraisal, waived inspections, etc etc. 

Granted you still need to get the required inspections done since you're pulling permits. 

Despite asking for only a two day inspection period due to only seeing the house on video before making the offer , The sellers counter was zero inspection, which I accepted.  

Please contact us for instructions on returning the keys, final walk-through inspection, etc.

Inspections were completed on May 27th.

I just got a home inspection in CA done for $500 on a lot with two units on it.

She is requesting I show her the home inspection report I paid $500 for.

Based on this information you will know if the property would be worth the effort, ie if the cost to rehab exceeds the value or if there is enough equity you may be able to refinance the property pay the back taxes and get funds to rehab the property.Then I would suggest you get a home inspection that would give you a unbiased professional opinion of the work to be completed.

The inspection found a few items that need to be fixed.