If you are going to live there anyway, then it may make sense, plus you will hopefully enjoy the appreciation, and potentially be able to pull out some equity in the future with a refi or heloc.

We will be settling in this area long-term, potentially forever.Our first world problem gives us the following options:1.

I apologize - I thought the gist of the post was considering them as a potential property manager; on closer reading I see that wasn't directly the question.

When the time approaches I look forward to getting everybody's advice on partnerships, potential deals, and exit strategies!

The only upside is the potential equity.

Well unless the market in your area demands it I certainly would not go out of my way to buy laundry appliances for the vacant unit just to appease a potential tenant .

Your plan appears to fit your situation very well and executed properly has the potential to reap large rewards.

We recently added 3 AirBNB vacation rentals in Costa Rica to our investment portfolio, and my advice is to consider:1 - all potential expenses (it is higher than you might think for AirBNB, depending on location, upscale or not, outside management, etc), especially start-up furnishing expenses2 - high and low seasons because occupancy may not be consistent throughout the year. 

I know we could potentially get multiple properties with 40k.

My point is maybe it will hit too close to home that the potential stress it would cause is more heartache than what it's worth.