Very good points and to add, I'd also need some net or fence around the court to make sure the balls don't fly into the neighbor's yard.

Saw rent sign in yard and ended up having a great connection with the owner.

If someone is staying for  a year, I am going to need back ground checks, signed lease, the whole nine yards. 

Some of the cons of our location is that it is attached/sharing 1 wall to the front house, the patio is 30 ft up an alley where they walk past our front yard to get to their patio, it is lit and our neighbors have their front door on the same access alley so not a threatening looking alley by any means.

If the place is such a mess, do you want to own an asset in that area, even if it is in your back yard..

And others want a big yard for the family and to not be 15 feet away from the house right next to you.Now, that's all fine information.

Any recommendations on sourcing quality furniture, with that what amenities are good to have with a fenced in back yard?

Rented a room in my house, multi unit and lived in one unit with a friend, currently I have a little studio in my back yard I rent and for my mom I added an internal door and did a small addition to add a bathroom and kitchen to the the house and it is rented as a mother in law suite.

In fact I'd guess you could probably structure a discount into your agreement just because of the logistics (no roofs, no foundations, no yards). 1031 isn't a terrible idea but you've got a few hurdles outside of costs - you're going to have to have some possible properties already identified as your window is small, you'll still have to manage the property unless you go through a PM, you'll lock up more/most of your principal since you're going 'bigger'.

Why would someone give you any money and more so, why would you take someone you know's money when you have no experience, no game plan, and a misplaced idea to buy distressed which is the hardest thing to buy and salvage for new investors?