UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

November 15, 2011

Paladin Realty Income Properties, Inc.

(Exact Name of Registrant as Specified in Charter)

10880 Wilshire Blvd., Suite 1400, Los Angeles, California 90024

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (310) 996-8704

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Paladin Realty Income Properties, Inc. (the “Company”) previously filed a Current Report on Form 8-K on November 21, 2011 reporting its acquisition of an indirect interest in Pines of York Apartments, located in Yorktown, Virginia. The Company is filing this Current Report on Form 8-K/A to provide the financial information required by Item 9.01 of Form 8-K.

After reasonable inquiry, the Company is not aware of any material factors relating to Pines of York Apartments that would cause the reported revenues and certain operating expenses relating to it on this Form 8-K/A not to be necessarily indicative of future operating results.

(a) Financial Statements of Real Estate Property Acquired.

The following financial statements are submitted at the end of this Current Report on Form 8-K/A and are filed herewith and incorporated herein by reference.

Pines of York Apartments

(b) Unaudited Pro Forma Financial Information.

The following financial information is submitted at the end of this Current Report on Form 8-K/A and is furnished herewith and incorporated herein by reference.

Paladin Realty Income Properties, Inc. and Subsidiaries

(d) Exhibits.

None.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of

Paladin Realty Income Properties, Inc.

We have audited the accompanying Statement of Revenues and Certain Operating Expenses of Pines of York Apartments, a property located at 3100 Hampton Highway, Yorktown, Virginia (the “Property”) for the year ended December 31, 2010 (the “Historical Summary”). This Historical Summary is the responsibility of the Property’s management. Our responsibility is to express an opinion on the Historical Summary based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission as described in note 2 and is not intended to be a complete presentation of the Property’s revenues and operating expenses.

In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the revenues and certain operating expenses of the Property for the year ended December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

New York, New York

January 30, 2012

F-1

Pines of York Apartments

Statement of Revenues and Certain Operating Expenses

For the Year Ended December 31, 2010

See accompanying notes to the statement of revenues and certain operating expenses.

F-2

Pines of York Apartments

Notes to the Statement of Revenues and Certain Operating Expenses

For the Year Ended December 31, 2010

Pines of York Apartments is an existing 248 unit multifamily community property (the “Property”) which was built in 1974 and is located at 3100 Hampton Highway, Yorktown, Virginia. On November 16, 2011, an affiliate of Paladin Realty Income Properties, Inc. (“Paladin”), PRIP Pines, LLC (“PRIP Pines”), entered into a joint venture with DF Pines of York, LLC (“DF Pines”). PRIP Pines owns a 90% interest and DF Pines owns the remaining 10%, respectively.

The Statement of Revenues and Certain Operating Expenses (the “Historical Summary”) has been prepared for the purpose of complying with the provisions of Article 3-14 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”), which requires certain information with respect to real estate operations to be included with filings with the SEC. The Historical Summary includes revenues and certain operating expenses of the Property, exclusive of interest income, interest expense, depreciation and amortization, and non-recurring items which may not be comparable to the corresponding amounts reflected in the future operations of the Property. The Historical Summary also presents revenues and certain operating expenses of the Property allocable to PRIP Pines’s 90% ownership interest.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Property’s management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The Property’s lease agreements are operating leases. Rental income is recognized in accordance with the terms of each lease. Other revenue consists of various tenant related charges and are recognized as revenue in the period in which the applicable charge is incurred.

Bad debts are recorded under the specific identification method, whereby, uncollectible receivables are directly written off when identified.

Expenditures for repairs and maintenance are expensed as incurred.

F-3

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of

Paladin Realty Income Properties, Inc.

We have reviewed the accompanying Statement of Revenues and Certain Operating Expenses of Pines of York Apartments, a property located at 3100 Hampton Highway, Yorktown, Virginia (the “Property”) for the nine months ended September 30, 2011 (the “Historical Summary”). This Historical Summary is the responsibility of the Property’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of the interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission as described in note 2 and is not intended to be a complete presentation of the Property’s revenues and operating expenses.

Based on our review, we are not aware of any material modifications that should be made to the accompanying interim Historical Summary for it to be in conformity with accounting principles generally accepted in the United States of America.

New York, New York

January 30, 2012

F-4

Pines of York Apartments

Statement of Revenues and Certain Operating Expenses

For the Nine Months Ended September 30, 2011

See accompanying notes to the statement of revenues and certain operating expenses.

F-5

Pines of York Apartments

Notes to the Statement of Revenues and Certain Operating Expenses

For the Nine Months Ended September 30, 2011

Pines of York Apartments is an existing 248 unit multifamily community property (the “Property”) which was built in 1974 and is located at 3100 Hampton Highway, Yorktown, Virginia. On November 16, 2011, an affiliate of Paladin Realty Income Properties, Inc. (“Paladin”), PRIP Pines, LLC (“PRIP Pines”), entered into a joint venture with DF Pines of York, LLC (“DF Pines”). PRIP Pines owns a 90% interest and DF Pines owns the remaining 10%, respectively.

The Statement of Revenues and Certain Operating Expenses (the “Historical Summary”) has been prepared for the purpose of complying with the provisions of Article 3-14 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”), which requires certain information with respect to real estate operations to be included with filings with the SEC. The Historical Summary includes revenues and certain operating expenses of the Property, exclusive of interest income, interest expense, depreciation and amortization, and non-recurring items which may not be comparable to the corresponding amounts reflected in the future operations of the Property. The Historical Summary also presents revenues and certain operating expenses of the Property allocable to PRIP Pines’s 90% ownership interest.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Property’s management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The Property’s lease agreements are operating leases. Rental income is recognized in accordance with the terms of each lease. Other revenue consists of various tenant related charges and are recognized as revenue in the period in which the applicable charge is incurred.

Bad debts are recorded under the specific identification method, whereby, uncollectible receivables are directly written off when identified.

Expenditures for repairs and maintenance are expensed as incurred.

F-6

PALADIN REALTY INCOME PROPERTIES, INC. AND SUBSIDIARIES

SUMMARY OF UNAUDITED PRO FORMA FINANCIAL STATEMENTS

This pro forma information should be read in conjunction with the consolidated financial statements and notes of Paladin Realty Income Properties, Inc. (“Paladin REIT”) included in Paladin REIT’s Form 10-K for the fiscal year ended December 31, 2010 and Paladin REIT’s Form 10-Q for the quarterly period ended September 30, 2011, as filed with the Securities and Exchange Commission.

The following unaudited pro forma condensed consolidated balance sheet as of September 30, 2011 has been prepared to give effect to the acquisition by PRIP Pines, LLC (“PRIP Pines”) of a 90.0% interest in FP-1, LLC (“FP-1”), which owns the Pines of York Apartments, located at 3100 Hampton Highway, Yorktown, Virginia 23693, as if the Pines of York acquisition occurred on September 30, 2011. The actual acquisition of Pines of York occurred on November 16, 2011. Paladin Realty Income Properties, L.P. (“Paladin OP”) is a Delaware limited partnership that was organized to own and operate properties on behalf of Paladin REIT and is a consolidated subsidiary of Paladin REIT. The 90.0% membership interest in FP-1 is held by PRIP Pines, a Delaware limited liability company and wholly-owned subsidiary of Paladin OP.

The following unaudited pro forma condensed consolidated statements of operations for (i) the nine months ended September 30, 2011 and (ii) for the year ended December 31, 2010 have been prepared to give effect to (1) the acquisition by DT Stone Ridge, LLC , a single-purpose limited liability company in which Paladin REIT holds a 68.5% membership interest, of Stone Ridge Apartments, located at 1000 Watermark Place, Columbia, South Carolina, (2) the acquisition by Evergreen at Coursey Place Sole Member, LLC , a single-purpose limited liability company in which Paladin REIT holds a 51.7% membership interest, of Coursey Place Apartments, located at 13675 Coursey Boulevard, Baton Rouge, Louisiana 70817, and (3) the Pines of York acquisition, as if the Stone Ridge, Coursey Place and Pines of York acquisitions had occurred on January 1, 2010. The actual acquisition of Stone Ridge occurred on March 29, 2011, the actual acquisition of Coursey Place occurred on July 28, 2011 and the actual acquisition of Pines of York occurred on November 16, 2011.

These unaudited pro forma financial statements are prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had the acquisition been consummated as of the dates indicated. In addition, the pro forma balance sheet includes pro forma allocations of the purchase price based upon preliminary estimates of the fair market value of the assets and liabilities acquired in connection with the acquisition. These allocations may be adjusted in the future upon finalization of these preliminary estimates.

F-7

PALADIN REALTY INCOME PROPERTIES, INC. AND SUBSIDIARIES

PRO FORMA CONSOLIDATED BALANCE SHEET

SEPTEMBER 30, 2011

(UNAUDITED)

F-8

PALADIN REALTY INCOME PROPERTIES, INC. AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011

(UNAUDITED)

F-9

PALADIN REALTY INCOME PROPERTIES, INC. AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2010

(UNAUDITED)

F-10