Robert is looking for a great deal on income property that will begin producing income as soon as he purchases it. He's reviewing an auction catalog. Which property type most likely meets his needs?

Robert is looking for a great deal on income property that will begin producing income as soon as he purchases it. He's reviewing an auction catalog. Which property type most likely meets his needs?

• A. A duplex that's currently rented
• B. An old church that's in a residential zoning area
• C. A single-family home that's been gutted
• D. A vacant lot to develop

Answer: (A)

When evaluating opportunities for immediate cash flow, you want a property that already has tenants and active leases in place. A duplex that’s currently rented fits this best because income starts right away—the rents are already being collected, typically with an existing rent roll and security deposits. In contrast, the old church in a residential zone would likely require zoning approvals or a conversion, which can delay or complicate occupancy and income. A gutted single-family home needs substantial rehab before tenants can move in, so it won’t generate income until after work is finished and it’s rented. A vacant lot has no income at all until development occurs or a sale is completed. So, the duplex with tenants already in place offers the quickest path to income from the moment of purchase.

When evaluating opportunities for immediate cash flow, you want a property that already has tenants and active leases in place. A duplex that’s currently rented fits this best because income starts right away—the rents are already being collected, typically with an existing rent roll and security deposits.

In contrast, the old church in a residential zone would likely require zoning approvals or a conversion, which can delay or complicate occupancy and income. A gutted single-family home needs substantial rehab before tenants can move in, so it won’t generate income until after work is finished and it’s rented. A vacant lot has no income at all until development occurs or a sale is completed.

So, the duplex with tenants already in place offers the quickest path to income from the moment of purchase.