Real Estate Investment Business Startup Cost Comparison
Los Angeles, CA vs Chicago, IL
Los Angeles, CA
$47,000 - $993,000
COL Index: 166.5
VS
Chicago, IL
$35,000 - $753,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Los Angeles, CA | Chicago, IL | Difference |
|---|---|---|---|
|
Business Formation
|
$500 - $3,000 | $500 - $3,000 | Same |
|
First Property Down Payment
|
$25,000 - $750,000 | $19,600 - $587,000 | +28% |
|
Renovation & Repairs
|
$8,300 - $166,500 | $5,400 - $107,800 | +54% |
|
Landlord Insurance
|
$1,000 - $5,000 | $1,000 - $5,000 | Same |
|
Analysis & Management Tools
|
$500 - $3,000 | $500 - $3,000 | Same |
|
Closing & Financing Costs
|
$3,000 - $15,000 | $3,000 - $15,000 | Same |
|
Cash Reserves
|
$8,300 - $50,000 | $5,400 - $32,300 | +55% |
| Total Estimated Cost | $47,000 - $993,000 | $35,000 - $753,000 | +32% |
Local Market Factors
| Factor | Los Angeles | Chicago |
|---|---|---|
| Cost of Living Index | 166.5 | 107.8 |
| Commercial Rent ($/sqft/yr) | $30 - $85 | $25 - $65 |
| Labor Rate Index | 1.35 | 1.15 |
| Sales Tax | 9.5% | 10.25% |
| Minimum Wage | $16.78/hr | $15.80/hr |
| LLC Filing Fee | $70 | $150 |
View Full Details
Ready to Start Your Real Estate Investment Business?
Start your Real Estate Investment Business LLC in — free registered agent for 1 year.
Form Your LLC for $0 + State Fee →Trusted by 500,000+ businesses · Excellent rating on Trustpilot