We will both be on title and are planning to split costs and ownership evenly. 

Texturing the walls means that they don't have to be as meticulous (read: lower labor costs) when taping, mudding and sanding -- any imperfections will be covered up by the texture.So, when getting a drywall bid, if they're planning to texture, you should actually be negotiating the price down (or worst case, the same as smooth).

I am talking to a lawyer to outline our plan tomorrow so we execute legally, but there doesn't seem to be any information available explaining how people are pulling this off.

Hi @Adam Burrows, wanted to give my 2 cents from an estate planning/asset protection background.

i am planning on talking to real estate lawyer and real estate cpa but wanted to see if there were any thoughts from the forum. thanks!

It only makes sense if you plan to pass on real estate.

To me it looks really solid but the only thing that matters is your business plan and how you set up your goals that will determine if it is a good deal for you. 

I plan on going there tomorrow to look at the flooring

Depending on the exact scope of your intended business plans speaking to an attorney or CPA might also be recommended. 

Personally, I am not a big fan of owning dirt unless there is a much larger and more lucrative plan.