So issue this poses in this case is that technically won't they be disqualified from being property tax exempt since they'll be the legal owners of a hair salon and apartment which are for profit business es? 

Ok one more question then I'll get out of your hair.

Yes you can be sued even with an LLC but you can be sued because someone doesn't like the color of your hair, it doesn't mean they will win. 

Run away from this like your hair is on fire.

I currently have a deal in my cross hairs it's a small one that I could take on my own but I have a business partner that I would like to bring in on the loan.  

Those Bay Area transplants are coming here to live.

Its really hard when you keep seeing deals not to want more and more but the stress isn't worth it. you'll lose your hair far too early.  

Is there a lack of restaurants, hair places, professional office space?

We have found it's the turtle vs the hair approach, with at least 3% consistent rent growth in Indianapolis for example, we have been able to hit consistent returns and do not plan on changing anytime soon :)

.- Similarly, Medium to Large Private businesses / private equity seem at all time highs in terms of multiples and valuations, perhaps edging back a hair from where they were a year ago- I've long thought that small private businesses, especially in the services sector are poised to do very well as an asset class (lots of opportunity to buy businesses for 1-3X Cash flow in this space).