Real Estate Investment Business Startup Cost Comparison
Washington, DC vs Chicago, IL
Washington, DC
$44,000 - $937,000
COL Index: 148.7
VS
Chicago, IL
$35,000 - $753,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Washington, DC | Chicago, IL | Difference |
|---|---|---|---|
|
Business Formation
|
$500 - $3,000 | $500 - $3,000 | Same |
|
First Property Down Payment
|
$23,900 - $717,400 | $19,600 - $587,000 | +22% |
|
Renovation & Repairs
|
$7,400 - $148,700 | $5,400 - $107,800 | +38% |
|
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
|
$7,400 - $44,600 | $5,400 - $32,300 | +38% |
| Total Estimated Cost | $44,000 - $937,000 | $35,000 - $753,000 | +24% |
Local Market Factors
| Factor | Washington | Chicago |
|---|---|---|
| Cost of Living Index | 148.7 | 107.8 |
| Commercial Rent ($/sqft/yr) | $30 - $80 | $25 - $65 |
| Labor Rate Index | 1.42 | 1.15 |
| Sales Tax | 6% | 10.25% |
| Minimum Wage | $17.50/hr | $15.80/hr |
| LLC Filing Fee | $99 | $150 |
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