Second, does the lender do an internal BPO or get a 3rd party appraisal? 

Yeah I agree here for a number of reasons but I'll just provide a link that may help you get started in right direction.Revoking a Subchapter S Election | Internal Revenue Service (irs.gov)From what I've read the IRS is pretty understanding when it comes to S Corporation mishaps.

for your own internal numbers and evaluations though its worth looking at what other similar retail spaces, specifically barbershops, traditionally produce on a monthly basis.  

What is the monthly cash flow, cash-on-cash return, return on investment, and internal rate of return? 

This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”I am wondering if this counts as official Notice of Exemptions in Los Angeles county. 

YMMV, I always just use the numbers/procedures/etc directly from Fannie Mae, ignore our internal company forms/procedures/etc, and start yelling at people if our company's internal stuff is incorrect (this amounts to an overlay, I was recruited on the promise that this firm has no overlays, so that's my leg to stand on when I'm raising hell :P ). 

And trust me, interning on the side while going to school is not going to give you the knowledge and expertise you will need to challenge the system, I've done that too.

I would say the bulk of these travelers are traveling medical professionals, international & U.S. based students on internship / rotations / abroad programs, business travelers (esp international travelers), and traveling theatre troupe individuals (think about the actors who come to Chicago for Broadway tour shows by themselves). 

Also it is challenging to find a service company that is 100% comfortable and experienced in dealing with international asset protection. 

Five minute drive to Melbourne International Airport.