Understanding costs, especially realistic rehab costs BEFORE you purchase is vital. 

Each is a vital component, and the three of you need to work through the roles first. 

I'm told by my agent that the current (or previous) seller that did the modification to the garage did not do all of the proper permitting before doing the construction.

Assuming lender is willing to work with you, you should be able to work out a modification/renewal that would get signed at closing by seller and lender along with the transfer document(s) that would be signed by you and lender.

Basic are we purchased two tracts of land vitally located in middle of a large commercial development for $2.5 million.

This is why it is vital for a passive investor to know what questions to ask to qualify the syndicator.

I'm inclined to think this would best be done 1 unit at a time and should there be turnover due to the lease modification, we would only be turning over 1 unit at a time as opposed to 2 or all 3.Any questions, thoughts/ideas are always appreciated and thank you once again for your time & feedback.Cheers!

I don't quite understand what the reason for doing the modification would be in this case.

An emergency fund is vital, so set some funds aside for maintenance and unexpected issues. 

When dealing with a loan modification.....make sure you know the Real balance....not the balance they are making payments, as typically about 1/3 is “set aside” until the end/pay off....sometimes known as a “silent second”.