Won't go into details of how sharepoint apps are created, there are already enoough on net.
Two issues though which got me stumped and ended up wasting a lot of time...
Recommended is to perform these steps and then create the visual studio project

1. Non System Account for App installation: Chances are you are on your single server developer machine and installing the apps. Well in that case use a non-system account to create and deploy the app.  Therefore, create a new account in your machine ( or DNS ) and use that account.
2. Disable Loop Back Check: Since you are accessing the app from the localhost, this is needed. Otherwise the browser will repeatedly keep on asking you for authentication. Here is how to do it

Cheers

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