If you think you want to try syndications, read The Hands-Off Investor by @Brian Burke before you do anything.

A handful have been sued. 

In general hands off ADU additions cost more than the value that they add.Have you looked into what the garage could rent for as a garage?  

The trustee, borrower or bank can ensure you get your hand slapped hard for approaching the circumstance as a work-out or foreclosure fix it guy without a license or being an attorney.Let's say that we can approach the owner and be in compliance, which you can.You will not purchase a note as an individual investor from a bank that has started foreclosure by making an offer like that.You get a request from the borrower for the bank to sell the note in lieu of payoff as demanded.

I’ve seen folks panic and act like they’re about to be stuck holding a ticking time bomb, but if you structure the contract properly, give yourself a decent inspection or feasibility period, and understand local investor demand, you’ll rarely end up empty-handed.

that was not a method that Armando taught in the seminars I attended these were strickly how to find BRRR props and rehab them and then resell or refi and keep.. the Markets we worked were Vegas and Orlando and Frankly those investors who actually bought property doubled their money or more with the deals i funded for them and they bought on their own it was 2011 to 2013 which as we know was a prime buying time and had to hand it to Armando he picked two of the best Markets.. 

Not following the requirements (within Seattle city limits will likely have additional rules and regulations) opens the seller up to liability.Additionally, the seller always has the option of offering "cash for keys" arrangement but be sure that no funds change hands until after the property is vacated and locks are changed.John

Personally I would rather finance it and keep the cash in hand to go buy more properties than pay the full amount out of pocket, regardless of the potential tax benefits.

These sellers hand you the keys and stay out of the way until its time to sign a contract. 

You should require the first month's rent paid in full before handing them the keys.Start the eviction process.