pulling permits - should I go by the book? Or go for lower cost?

Hello, 

I've recently purchased a fourplex in inglewood and am about to start demo on one of the units.  I've come to find that there is asbestos and lead in thsi unit so the cost of rehab has just gone up considerably for the removal/demo.  So my budget is really gotten super tight. This is only the ifrst unit that needs rehab. Got three more to go after this!  

After chatting with the city buidling and safety, they highly recommended I have the contractors pulll permits for me because of liabilities, etc.  This all makes sense but my contractor does everything sort of unofficially, so he can offer lower prices.  It's extremely tempting to take him up on that offer. My friend referred me to him and has done a lot of rehab with this guy in the past, so I kind of trust him.  But I still am not sure what do to.  If I do everything by the book, I'll need the licensed contracters to pull permits and do everything legit, which will destroy my budget. It's already going to be super tight because of the asbestos removal.  What are your opinions on this?  How should I approach it?  One part of me feels like the government gets in the way of everything and overcomplicates things, making costs skyrocket.  The other part of me worries about the risks/liabilities with going the cheaper route.  Any opinions?  Seems like rehab is going to be soooo expensive. 

thanks, 

mario