ok, first off, accept that you want to take on a big thing
not sure i’d till. and beyond question, the first thing i would do is take an “inventory” of what plants are already there, you can learn a lot that way, and there could be quite a lot of things already there that you really want to keep.
secondly, since it’s in a residential area, go ahead and grab all those lawn bags that people put out with tree/shrub prunings, grass clippings, leaves, etc. i’d sort out the grass clippings and dead leaves in one pile, and put the sticks & woody stuff in another one. you’ll be wanting this material.
next, check out the slope of the area and try to determine where the water is going (and where it isn’t going). no point putting drought tolerant plants in marshy ground or putting marshy plants in dry sand.
in other words, the first thing is getting a lot closer to that spot. you need to get a better feel for how it works now before mucking with it. once you start to see where/how it works (and where/how it struggles) you can start to look at options on how, where & what to plant to enhance it.
also, don’t limit your observations to just plants, keep an eye out for insects, birds, etc, etc. if there are any animals that visit that spot, that’s another relationship you want to understand.