Loving the final result! I guess this is „watercolor week“! But before I recommend this tutorial I would like to point out some parts that might be a little bit confusing. In STEP 3, after you change the Opacity of that top paper layer to 75%, I recommend setting the Blend Mode of that same layer to Multiply, to get a clearer picture.
In STEP 4 you don’t need to put photo layer in a Group Layer, just apply Layer Mask>Hide all directly to the photo layer. And, of course, play around to get the best result!
Check it out!
You can find it here:
Super Cool Watercolor Effect in 10 steps in Photoshop