Add the interest earned to a pool and after 2 cycles pull your start up principal back and lend "house money". 

Because most foreigners wanted to buy property in that so-called forbidden or registered zone (by the water) and because that prohibition made no sense whatsoever, they wanted to lift it.

You need to get in front of where things are going in your view; your view may be wrong, so take that into account too.My view on REI and a little in macro-- primo lands will be more primo, investor pools will run to chase dollars which in turn makes non-investment grade areas a better return on equity, managing and owning debt may be a better return than equity, international equity exposure may be superior to domestic, liquidity and cash reserves will remain highly valuable and the notion of all cash needs to be invested will no longer be pushed as hard.

It's also at the end (of the street, no neighbors/more privacy on one side) adjacent to the city pool and a park that's about to be upgraded by the city. 

When should I form this partnship and open a business bank account to pool capital?

Lots of charm and we're on the water.

Water sewage. ????

Many OOS investors set themselves up for failure because they don't invest the time to ACTUALLY understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That OOS property Class rankings are often different than the Class ranking of the local market they live.Class A is relatively easy to manage, can even be DIY remote managed from another state.

There are holes in the shower liner and behind and around the tub which I'm assuming is causing water damage. 

You can make money anywhere, you just need to look at the demand for what you are offering and how big the pool of qualified tenants would be (if considering rentals).