A pre-WWII pre-K-22 Masterpiece in 100% condition, with box and papers,
The masterpiece debuted as the K22 2nd model, so what you're talking about is basically the K22 / 40. One in your condition is already at $5k or so, without the "special features" you said would make it better. It doesn't need to be better given what you said. Maybe you meant the K22 outdoorsman aka k22 1st model. The "masterpiece" name was first used with the K22/40 aka K22 2nd model, because of the improvements in sights it had.
Collecting as an investment is not a good idea. On average you'll get a better return from stocks or mutual funds.
On average, it completely depends. Blanket statements don't teach anyone anything. I beat most mutual funds when I go to sell guns that I buy. I'm not a dealer, but I sell sometimes. I once sold an H&R 38 S&W American for $200 that I paid $35 for. I did buy it from a gun guy too, he just didn't care about it. So thats about 6x my money, show me that mutual fund?
The other key for investments is time. I had the gun less than 2 yrs, probably less than 1 year actually. Thats a really good return, 6x, for a 10 year investment when you think about it. That $200, you could say then went to Webley MK VI 455 I bought last year. It was rechambered to 45 acp via cylinder shaving, but it had the "RIC" marking. I sold that gun for about $630. That was less than 3 years total. Remember, this all started with $35, and I ended with $630. Calculate that percentage
A 100% return would be $70.
Most peope won't beat the mutual funds, but you don't have to keep a gun for 15 yrs for it to appreciate in value either. For those who can do well with guns-, they do it a lot. I prefer buying guns over gold (unless of course the gold could be had for under spot). I can get my money back right away usually with guns, but since gold has the stigma of a great investment, you must pay a lot more to invest in it. Of course, I have guns that are more long term, but IMO the short term investments are best.
That kind of stuff happens a lot. To the people who question guns as investment, I leave you with this: for guns to be an investment,
you must first buy right, then you must sell right. This means many different things. The average guy pays $647 (just an example) for a new Remington model 700, and then doesn't like it, and sells it to an FFL / individual for $300 because he needs money, doesn't like the gun, lost his job, wrecked his truck, got a fine, etc. So the majority of people do neither, and then many others buy right and sell wrong and vice versa. Few people do both right. This post is the secret. The secret is out! Good luck!
As for the OPs question, patience is paramount. S&Ws are hot right now, but there were so many made, and the economy is so bad, that the deals are out there. Beyond P&R, which are actually common, I would look for 5 screws (maybe 4 screws if you can find them) and more specifically, good, pre war 5 screws. People love (such as me) the pre WWII 5 screw guns. Many different ones, most are collectible, and few have both condition and originality. Condition is important, but so is rarity. Remember that the 3 factors that determine a gun's value are not condition condition condition which most people would have you believe, its more accurately: condition, rarity, and demand. You basically want a gun thats strong in all 3 areas, which is very hard to find. A good example of a S&W that is strong in all areas would be a 95% S&W Registered Magnum. Of course, thats way out of your range, but guns can be found in your price range that have strength in all 3 categories, but surely at least two. Best of luck you in your search. Remember you can ask the TFL if you find something to see what the consensus opinion is. There is a lot of knowledge about many different guns here on the TFL.