Also, I'm not sure how you're paying attention to it on the tax side, but the unit that you are living in's profit at sale is calculated differently than the other unit that you're renting out.Once you move out, that unit is officially available for rent so from that point forward, any profit gained at future sale will be calculated starting from that point and will be taxable.

So, the actual increase to market rent will be much lower.

IF you plan on going back someday, and this is the home you want to move back to, then renting it would be a good idea as long as you estimate that it will cover itself, or preferably, cash flow, which it appears that yours will at @ $2K or so per month (after expenses). 

He has been alongside me on the other deals so I’d like to give him equity/skin in the game and I don’t know how else to do itQuote from @Basit Siddiqi: Getting a property with a partner / friend will not help you from getting hosed on taxes.I wouldn't move forward - You mentioned beng a high income earner so your hourly rate is very high.

If the tenant stays, they will be on a month-to-month lease, which requires a 30-day notice.

Being that you are a full time nurse with a baby on the way (Congrats by the way) time will not be on your side.

I will back it up with sound logic.  

Despite if it works and or what anyone says... arbitrage will always  have a special place in my heart since it was what got me started in this RE game. 

1) don’t forget, in LA you will have a VERY hard time raising rents more than 9% per year.

At least ones that will walk the property with you and give you an fair estimate.