Even if you buy the right property, managing the rental and tenants can literally destroy your finances, sanity, health, family life, etc.Keep educating yourself and keep trying!

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. 

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

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).

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.

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

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

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