Real Estate Investment Business Startup Cost Comparison

Los Angeles, CA vs San Francisco, CA

Los Angeles, CA

$47,000 - $993,000

COL Index: 166.5

VS

San Francisco, CA

$56,000 - $1,238,000

COL Index: 179.8

Detailed Cost Comparison

Expense Los Angeles, CA San Francisco, CA Difference
Business Formation
$500 - $3,000 $500 - $3,000 Same
First Property Down Payment
$25,000 - $750,000 $32,600 - $978,300 -23%
Renovation & Repairs
$8,300 - $166,500 $9,000 - $179,800 -7%
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 $9,000 - $53,900 -7%
Total Estimated Cost $47,000 - $993,000 $56,000 - $1,238,000 -20%

Local Market Factors

Factor Los Angeles San Francisco
Cost of Living Index 166.5 179.8
Commercial Rent ($/sqft/yr) $30 - $85 $40 - $110
Labor Rate Index 1.35 1.52
Sales Tax 9.5% 8.625%
Minimum Wage $16.78/hr $18.67/hr
LLC Filing Fee $70 $70

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