Compare it to your current living expenses. 

You'll need to compare apples to apples. 40k seems like a low number to design, furnish and amenitize a competitive short term rental projected to do $100k. 

For example, brick homes can last hundreds of years if taken care of compared to some new stick built development homes.

Zillow and Redfin are great for this.Look at Rental Rates: Compare current rents for similar places.

People who are able to work their business or job remotely will choose a vacation style locale to live like Florida where we have great weather, no state taxes, and a very low tax rate compared to other states.

Just a couple of thoughts as you compare insurance.

A Pew Research report found that between 2017 and 2022 - the beginning of the Minneapolis 2040 plan - “housing stock grew by 12% in the city, compared to 4% statewide.

I personally prefer buying an infill lot compared to build to rent.

@Greta Andrews,They both won't be able to serve the same purpose, let's compare the two.Save money: 100% of your contributions to an IRA are available for you invest from the day one.

I have (4) properties out there simply because of the price point compared to MA.