Real Estate Investment Business Startup Cost Comparison
Minneapolis, MN vs Chicago, IL
Minneapolis, MN
$30,000 - $579,000
COL Index: 109.5
VS
Chicago, IL
$35,000 - $753,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Minneapolis, MN | Chicago, IL | Difference |
|---|---|---|---|
|
Business Formation
|
$500 - $3,000 | $500 - $3,000 | Same |
|
First Property Down Payment
|
$13,700 - $410,900 | $19,600 - $587,000 | -30% |
|
Renovation & Repairs
|
$5,500 - $109,500 | $5,400 - $107,800 | +2% |
|
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
|
$5,500 - $32,900 | $5,400 - $32,300 | +2% |
| Total Estimated Cost | $30,000 - $579,000 | $35,000 - $753,000 | -23% |
Local Market Factors
| Factor | Minneapolis | Chicago |
|---|---|---|
| Cost of Living Index | 109.5 | 107.8 |
| Commercial Rent ($/sqft/yr) | $18 - $45 | $25 - $65 |
| Labor Rate Index | 1.08 | 1.15 |
| Sales Tax | 8.025% | 10.25% |
| Minimum Wage | $15.57/hr | $15.80/hr |
| LLC Filing Fee | $155 | $150 |
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