@Trenton Pelloquin There are certainly benefits to QBO, including the fact that many in the industry players are using it, which could facilitate delegation of bookkeeping activities and tax preparation. 

Being highly leveraged on commercial debt that is on a adjustable rate mortgage increase risk.  

You would need to have a rock solid argument prepared for how community benefit (affordable housing?)

The key is to show the long-term benefit, including both the steady income and the future sale profits.If you put together a clear proposal showing the return on investment (cash flow + equity appreciation), it could be a compelling case to bring in a new partner to buy out the current one.

My current partner isn’t as enthusiastic about sharing the building with a tenant but does see the immense benefit to having rental income to help offset expenses.

Adjust the split if one invests more or takes on greater responsibility.

If you have any VA benefits left (definitely check into that) I would try to use them and maximize that benefit. 

It appears that you have a complex structure already suggested to you(PM company, S-Corp, Investment LLC, etc).Who suggested this structure to you and what did they say was the benefit for setting all these companies up?

However, if I were to proceed with this, I would likely need to adjust the rent accordingly.I’m looking for advice from the community on how best to approach this situation.

Your strategy of re-marketing a 3-bedroom plus office as a 4-bedroom home office is a smart way to boost rental demand and rental income without major renovations.One insight I’d add is the potential benefit of exploring cost segregation studies once you build a larger portfolio.