I am considering a financing arrangement and would like thoughts on whether this makes sense.  

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

No arrange to move out, No any solution for this issue.

I'm having difficulty finding insurance for this arrangement. 

Again, the solution is cash buyers, or some kind of creative financing arrangement that brings then current. 

However if you want to add an extra lawyer of experience in the process you might just get a commercial mortgage broker to help arrange everything for you.

I will want to live in it, and assume my partner would as well, though open to other arrangements.

It is zoned for this type of arrangement.  

You probably won't get year leases (which you don't want anyway), but make sure they understand that it is a month to month arrangement that can be extended for as long as they follow the rules.

The landlord shall arrange for the removal of garbage and rubbish from the premises unless the parties by written agreement provide otherwise.