I do not recommend backyard especially if you have a pool or hot tub and certainly nothing interior!

However, ownership distribution must be clearly outlined based on each party’s financial contribution, and income and expenses must be divided accordingly.You might look into forming an LLC or limited partnership to pool funds, which can streamline asset management.

You need your project to be ready to rent by mid to late Summer; otherwise, you can cost yourself by either a bad renter pool or several months of vacancy.The Twin Cities are too big to properly answer your question.

And of course, most homes have HOA's (homeowners associations) that can be $20-$250/month to pay for community maintenance, sometimes lawn care, cable/internet, amenity upkeep, pool, security etc. 

Single-family homes in New Jersey have appreciation potential, appeal to a broad tenant pool, and are easier to sell.

Beating the competition with design and amenities is definitely possible due to the smaller pool of people but my concern is having to invest potentially large amounts of extra cash for the amenities just to have a chance in making it cash flow.

That is because you want to be in a desirable area and have a pool etc. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Both parties as long as I can remember want interest rates at 0. in order to inflate the assets of their donor pool which holds stocks, bonds and real estate.