Router configuration

HI, would like to ask for help.

Me and mine neighbour, we would like to share one internet connection. Each of us has its own wifi router. In to mine router (WAN port) is plugged FTP cable from internet provider. From one of four LAN ports of mine router the FTP cable will go to the WAN port of neighbour's router.

Ours networks should not to see each others.
Each of us want to have its own homegroup.

How to configure routers?
On one site I have found this configuration (but I think something need to be changed):

mine ROUTER1:
WAN: ADSL address xxx.xxx.xxx.xxx
NAT
LAN+Wi-Fi: DHCP server (router's IP e.g.192.168.1.1, IP pool 192.168.1.3 - 192.168.1.100)

neighbour's ROUTER2:
WAN: static IP: 192.168.1.2, subnet mask: 255.255.255.0, gateway: 192.168.1.1, DNS: 192.168.1.1
NAT
LAN+Wi-Fi: DHCP server: router's IP e.g.192.168.2.1, IP pool 192.168.2.2 - 192.168.2.100

Or on the ROUTER2 turn off DHCP and NAT?

THX

 

Well since no one is willing to answer that I guess I'm gonna have to stick my neck out here.
There are several ways of doing it and and either should work.
My first recommendation is to set IP ranges different on every router i.e. one will use 192.168.xxx.xxx and the other 10.1.xxx.xxx. You could possibly achieve the same result by using different subnets with the same IP range for both or both solutions at once.
NAT would be best enabled on both routers- that would be a good way of keeping those networks separate.
Second router should also run DHCP for its clients.

Second routers IP being out of first routes IP pool is OK.

 

For someone who stuck their neck out...you answered it good

 

Thank You For Straight Answer Dexter