Location, professional photos, great management.

As the local governments struggle to manage tax payer money responsibly, they should really offer incentives to private builders to build "income restricted" at a much lower price. $220-$300/ft for vertical build costs.  

I would have a written agreement as to all terms of the deal, who makes payments, who is manager, who gets profit, who gets paid and how, etc. 

I could probably rent it for $750-$1000 per month over what the standard monthly costs are right now (not including vacancy, maintenance, management company, etc).

Condos put's a layer of management between you and complete control of your property.  

I'd try to find a property manager that can help you keep an eye on it and let it appreciate. 

Partner brings caliptal/down payment (passive involvement) and I do the management (active REPS activity).

I assume, I will have to open business accounts and use those to manage my business expenses and business earnings etc. 

In general, I agree in our market here in Pittsburgh "rent by the room" isn't a very profitable strategy and when we've managed for owners with this strategy it always turns out bad.

For me, it's a great blend of banking, bookkeeping and tenant management software.