Real Estate Investors have been able to manipulate and massage that law to benefit them, but I still would contend that you are taking advantage of the system and why it was created.Sure, you will probably get away with it, but it doesn't mean it is morally and ethically appropriate.

One is rented to a Massage Therapy Wellness Lady, and one office is totally empty.

I've received non-audited financials, walked through (but not fully inspected with my team) the property, and am massaging the purchase price in my spreadsheets down to the point to get me a cap rate of 10.

Another thought was to keep one of the units with the walls and just upfit it for a Salon and then rent out each room separately to hair dressers, nail business, massage business, tanning business, etc. 

I'll answer your question with 3 questions of my own.Question 1:  What if you were going to be a Doctor, Lawyer, Architect, Hairdresser, Massage Therapist, and more, would you have no problem paying (and in some cases paying a lot) for your education?

Investors often say they can do without one and massage the numbers to buy something.

I heal people's aches, and prevent them from dying early by helping them be healthy (weight loss, exercise).I'm a certified health coach, personal trainer, I do stretch and massage therapy.I want to meet amazing people who have a love for life, and are successful in many areas of life.

Purchase it at cost and they would not have a taxable event either.And with a little massaging they can get the first loan without a prepay penalty. 

I don’t know about you, but I come up with the best ideas and think the clearest in the middle of the night, during meditation time and while getting a massage or pedicure!

You are leveraged out of power here and will likely have to fib or massage the facts to get the deal UC which will not end well.