ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.

I would mention that you'll be filing a complaint with the state regulatory agency that oversees realtors in Illinois.

Certainly real estate syndication can be a great way to share risk, pool equity and acquire larger assets but as @Jay Hinrichs noted if you chose that path you enter into a new world of regulatory scrutiny.  We have put together syndications to buy multi-family assets and have also participated in syndications sponsored by other investors as a passive investor.

.- Liability - always flows to the deepest pockets- Fear of regulation - regulatory bodies are gunning to take down short term rentals basically everywhere.

While one would need to review legislative/regulatory history to really understand the "why" one can deduce that it comes down to the fact that rules are different (e.g. rules for calculating 5-year "clock" for qualified distributions, etc).

It would be interesting to see if certain areas see lower inventory, with demand remaining constant, because those areas are a more intrusive and regulatory climate.

Presumably that comes with some required SEC fillings and additional regulatory concerns.

Some places also defer licensing to the relevant industry regulatory body (etc: EPA for HVAC).

Time costs, material costs, regulatory costs and mistake costs.

But they start with you using the services of a Qualified Intermediary whose job is to be your guide, and keep you in between the regulatory lines.