There is no magic formula when it comes to successful home property investment. However, you can get inspiration from the best practices of seasoned and successful property investors and come up with your set of ground rules. Here is a list of 10 things that you can do to make a cash cow out of your first home property investment.

Assess the outcome of your investment options

Perform cost-benefit analysis before making any investment decision. For instance, before you perform any renovation project, it is critical that you assess whether the added value is sufficient enough to cover the renovation or not. Look at latest market trends and indicators and consult real estate professionals. Make sure that you are up to speed with regards to the development in the real estate market.

Approach the task as a team

For property investors, the oft-repeated cliché – two heads are better than one – is most significant. In order to make informed investment choices, it is extremely important that you adequately consider several variables. However, you cannot be expected to have the technical expertise and skill set to assess all of these variables that affect your business decision. You will have to rely on the expert opinion and professional advice of other persons. As such, it is best that you consult other professionals and come up with a "team" position in order to increase your chances of success as a property investor.

Experience is your best teacher

No amount of study and training can turn you into a full-fledged and seasoned property investor. You have to experience the entire process in order to get the right "feel" of being a property investor. As you log in the hours and increase the number of completed real estate deals, you will be able to identify your comfort zone and establish your own rules for a successful property investment venture.

Allocate 25% buffer to your budget

Always add 25% to your property investment budget. In assessing your investment options, it is wise that you add 25% to your estimated project cost. For instance, if your home improvement contractor quotes the budget for your proposed home renovation project, you must add 25% to the amount as a buffer when performing a cost-benefit analysis.

Home remodeling is like peeling an onion

Your home property can be compared to an onion. As your home renovation project becomes more extensive, you tend to peel more layers of your property and more problems become apparent. This means a higher budgetary requirement can significantly impact on the final benefit that you gain from such home improvement projects.

Carefully weigh your investment options

You must be able to weigh your options while taking into account your investment objectives and priorities. For instance, if you own a 3-storey property with a basement, you may consider as one of your options renting out a few spaces of the property. Renting a portion of your property is a logical and attractive option if you are exploring your alternatives so that you end up owning a mortgage-free property.

Make sure that your property has adequate space

The value of your property will be significantly affected with the decline of available space. The appeal and perceived value of your property investment will suffer significantly if, for example, you have a kitchen that has limited or zero counter space.

Do not limit your budget for your drywall

You have to remember that your drywall is basically the fire-barrier of your property investment. It is not wise to scrimp on aspects affecting the structural integrity and safety.

Work on the exterior

Property owners are too hung up about how the interior looks that they fail to make the necessary work on the home exterior. You have to remember that the curb appeal is the first aspect that is seen by your prospective buyers. First impression is something that you must seriously work on to ensure that you start the transaction with a positive judgment from your prospective buyers.

Do not improve on all aspects of the home at the same time

If you are looking at a long-term investment, then it is not wise to engage in a major home remodeling at the drop of the hat. Focus on the aspects of your home that need immediate attention. Prioritize your home renovation activities by focusing on those aspects that will significantly enhance the value of your home.