West Virginia Mortgage Law Practice Test 2026 - Free Mortgage Law Practice Questions and Study Guide

Question: 1 / 400

What purpose do investment properties serve?

For personal use only

To generate rental income or appreciate in value

The correct choice highlights the primary financial goals associated with investment properties, which are to generate rental income or to appreciate in value over time. Investors typically acquire these properties not for their personal use but to benefit financially through ongoing rental payments from tenants or by selling the property at a higher price than the purchase price after it appreciates in value.

Investment properties can include residential units leased out to tenants, commercial property rented to businesses, or land that may increase in value due to market developments. The focus is on maximizing returns through these financial mechanisms. This investment mindset distinguishes these properties from personal residences or properties meant solely for immediate owners or first-time buyers seeking a primary home.

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As a primary residence

For sale to first-time buyers

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