I sent Dad back the next day because something bothered me and Dad came back with a record that had 10 days on it!

A way to build an instant-track record for any transaction in your market is to be an investor yourself.

Will they transfer over records and system access as part of LOI?

It is a recorded land contract, which gives me full authority over the properties.

At minimum, it should protect you for any recorded liens (tax, water bills) and bogus claims to ownership (aunt Sally coming out of the woodwork to claim ownership).

. $10,000-$15,000) Studio (0 bedrooms): 300-400 square feet (sf) (most likely a garage conversion):According to MLS info, in the past year, the rental rates of studio units were $1,200 for ADUs in lower-cost areas and up to $2,500 on the high end for ADUs in portions of LA like Venice and West Los Angeles. 

There were several times that they found problems that a regular search of the public record for encumbrances wouldn't show (and the bank's title company was less than honest about it). 

When assigning contracts it doesn’t happen like that, and your only record of being in the transaction is when your assignment fee is logged in the closing docs.

also, how much should I look into if I were to build a studio with a small kitchen and bathroom in the unit?

Typically commercial lenders are looking for 35% down, some will do 20-25% for multifamily commercial, and rarely less that that unless you have a track record/solid history with these types of value add deals.