The suspect was identified as Steve Taylor, 20, of Long Beach.
Cypress police responded to the area of Orangewood Avenue and Valley View Street after receiving a call about a shirtless man carrying a large knife around 7 a.m. Police chased the suspect as he ran through Manzanita Park. Officers said he then broke into a house on the 11500 block of Panay Street.
After a brief standoff, a fire broke out inside the home. Orange County Fire Authority firefighters put out the flames through a back window.
Officers entered the house and found Taylor dead in the bathroom. It's not yet known how he died.
Family members said the people who live at the home were away on vacation at the time of the incident.