An FHA 203k (or Fannie Mae's companion program "HomeStyle") are (IMHO) great options for buying a fixer.You can write an as-is offer (which may give you some negotiating leverage on a fixer) and finance all of the renovation costs in with the purchase.Your down payment is based on the "acquisition cost", which is the aggregate of the hard and soft construction costs (actual bids + permits + engineering + design +renovation related loan fees).These loans do take some extra leg-work on the front end.

Did you pull permits for the work performed thus far?

I don't know how you'd find a few gc's to interview but the permit office lists permits and the contractor is named and I bet you could ask a plumber or electrician who does rehab type work who they'd hire for their mom's house.

I try to check local municipal records to see if there have been any permits pulled recently for the big ticket items (roof, furnace, a/c, etc.).  

You're not permitted to damage the property ("lay waste" it usually says... which I find funny for some reason) and you're not permitted to do things that lessen the value... but alterations and improvements are permitted.

I believe there is a law or regulation in place that explicitly permits this.

I know a permit will be required but do I need an architect to create drawings for me so I can get the permit. 

Un-permitted studio in the back garage and more.

Has anyone updated a lease notices section with a clause permitting this type of delivery?

And you will need permit from the city...