The two bodies were of the presumed gunman and one of his victims. Both were found dead in the burned building.
The initial report was that as many as four people may have been shot at a house in the 500 block of Harvard Boulevard at 12:40 p.m. Then, flames erupted at the same location.
Firefighters surrounded the burning home, pouring on water but not entering because they were uncertain whether a gunman was still inside.
Authorities say the incident began as a domestic dispute. The suspect had a relationship with one of the victims, according to LAPD Lt. Andy Neiman.
"I saw three people come out, and they were bleeding, and then another person came out and said that there was a guy inside with a gun," said neighbor Carla Vega.
A 34-year-old male and two 38-year-old females were taken to local hospitals. Their conditions were not released.
Gary Davidson, 27, said he moved into the the house where the fire erupted about three months ago. He said he was at school when his friend texted him that his house was on fire. He said he had five roommates, but was unable to reach them.
"We were more than just roommates. We had our own little family," he said. "The roommates never spoke of anything, or anybody, who would have wished them dead or something like this."
Residents in the area were told to stay indoors when police were unsure if the gunman was on the loose. Harvard Elementary School was locked down, but the lockdown was lifted at about 2:10 p.m.
There were 135 firefighters at the scene. No firefighters were injured in the incident.