Which definition best describes 'investment property'?

The definition of 'investment property' that best fits is the one that describes a property purchased specifically for generating income or profit. Investment properties are typically acquired to earn a return on investment, which can come through rental income, appreciation in value, or both. This aligns with the fundamental concept of investment properties, as they are not primarily intended for personal use or enjoyment but rather as a financial asset aimed at producing income or a financial return over time.

In this context, while other options may describe aspects of real estate, they either focus on personal usage or lack the core component of the financial intent behind investment properties. For instance, a property rented to individuals for income does touch on a potential income stream but does not encompass the broader perspective of purchasing for profit. Additionally, properties managed by a third party can relate to investment properties but do not necessarily define the property itself and may include a variety of property types not specifically aimed at generating profit. Thus, the most accurate definition hinges on the primary motive of making a financial investment.