Real Estate Investment Business Startup Cost Comparison
San Diego, CA vs Chicago, IL
San Diego, CA
$43,000 - $906,000
COL Index: 160.2
VS
Chicago, IL
$35,000 - $753,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | San Diego, CA | Chicago, IL | Difference |
|---|---|---|---|
|
Business Formation
|
$500 - $3,000 | $500 - $3,000 | Same |
|
First Property Down Payment
|
$22,400 - $671,700 | $19,600 - $587,000 | +14% |
|
Renovation & Repairs
|
$8,000 - $160,200 | $5,400 - $107,800 | +49% |
|
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
|
$8,000 - $48,100 | $5,400 - $32,300 | +49% |
| Total Estimated Cost | $43,000 - $906,000 | $35,000 - $753,000 | +20% |
Local Market Factors
| Factor | San Diego | Chicago |
|---|---|---|
| Cost of Living Index | 160.2 | 107.8 |
| Commercial Rent ($/sqft/yr) | $28 - $75 | $25 - $65 |
| Labor Rate Index | 1.3 | 1.15 |
| Sales Tax | 7.75% | 10.25% |
| Minimum Wage | $16.85/hr | $15.80/hr |
| LLC Filing Fee | $70 | $150 |
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