Firefighters responded just after noon to a burning home in the 10200 block of North Silverton Avenue, according to the Los Angeles Fire Department.
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Investigators said it appeared the victim was bludgeoned, but an autopsy will determine if he was beaten to death or if he died in the fire.
Firefighters were able to extinguish the flames in about 23 minutes.
As police went through the home, they found the victim dead in the backyard.
Detectives said it's clear the victim was murdered. What appears to be an empty shallow grave was also found in the backyard, police said.
Witnesses said they believe the man's adult son set the fire and that he appeared to be under the influence or was having a mental episode. Police found him naked in the backyard as he was acting erratically and speaking unintelligibly, LAPD Lt. Guy Golan told Eyewitness News.
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He was taken into custody without incident and treated at a hospital for burns and smoke inhalation. Eyewitness News obtained video of the naked man in handcuffs and being led away by officers.
Witnesses added the victim's son was also naked on the front porch and screaming incoherently before he went back inside the burning home.
Neighbors said the incident stemmed from a dispute between the father and son.
Investigators are working to determine how the fire began.