What distinguishes an investment property from personal use property?

An investment property is characterized primarily by its purpose: it is acquired specifically to generate a return on investment, typically through rental income, property appreciation, or both. This distinguishes it from personal use property, which is primarily intended for the owner's personal enjoyment and occupancy. The financial aspect of investment properties is crucial, as property owners seek to enhance their economic standing through their investment choices.

While the other options may seem relevant, they do not fundamentally define what makes a property an investment. For instance, maintenance issues can occur with any type of property regardless of its investment status. Likewise, not all investment properties are leased to tenants; some may sit empty for periods while the owner seeks suitable renters or decides to sell the property. Lastly, investment properties are not limited to urban locations; they can be found in suburban or rural areas as well, depending on market demand and potential for ROI. Thus, the defining characteristic of an investment property lies in its intended use for financial gain.