You could make this work ST, MT or LT, depending on how you approach it - the key with unique grounds is owner-provided upkeep and service built into the listing and what permits allow. 

. $40k a year for not doing much is a great investment on $40k unless you are putting in a ton of work into the property.Who operates the property?

A few eye-opening online searches will easily indicate if this is what you want to get into.

But I don't know that I would jump into real estate just yet either.

If it concerns you that much, adjust the purchase price to take into account this added risk. 

Is there something I'm not taking into consideration?

This was my second foray into real estate investing, the previous one being through a “full service” turnkey provider.

It really depends on your comfort level and long-term goals, but even if you want to get into multifamily long-term, SFR may be the best option to gain some comfortability.

I'd love to chat with someone that has made the jump from a SFH portfolios into bigger commercial investments.

One thing to be mindful of is the cash flow of the property as you get into higher LTVs.