@Blake Kirby You're in a great position and you'll get lots of feedback here that can help you decide your direction.

The S&P 500 is up 25% this year.

My question is this: How could we structure an arrangement that would make sense for both my potential partner and myself?

Someone in zoning should be able to help. 

Big 3 bank is going to just let this go. 

No need to pay a 3rd party service for this. 

I've been on this board since 2010 and haven't found an example yet.

This is must and I agree.

We've never actually had a tenant use it after reading the addendum (which was our goal), and I think it helps prevent problems when they understand the myriad issues involved in its use.  

As many cities require insurances for any rental properties, this will be very challenging for market being affected.