Will the contractor be handling all the plans, permitting process, etc., or what?

He is licensed and permits were not pulled for the job.  

We could take on a lot, but not old fashioned wiring, an un-permitted second story, or a fire in a basement.  

Contact the local agencies that deal with building permits and zoning.

Sure, you may get some deals but they are illegal unless you have a permit (depending on the city ordinances) and frankly they give investors a bad name.

I wish it was done in advance for us as well so we could get grandfathered in on any code issues.There are open permits at the property from the previous owner so there is no way I am sneaking anything by on it at this point.Thanks for your reply.

The "Handyman" depends on what you do, you can probably hang a new door, paint the place, hang ceiling fans, but you can't get into trades that are regulated, electrical, plumbing, major construction where permits may be needed......generally.

If so, you would want to make sure that it is zoned/permitted appropriately.

Don't be buying a well done, but us permitted garage conversion.What are the rents?

I found a guy who would abate the drug safety issues but the permit stuff seemed like it would become a nightmare and the owner didn't want to be creative so I passed.Check every which way you can about the why and what it takes to bring it up to code.