This as-told-to essay is based on a conversation with Isreal Adeyanju, 32, a coffee shop owner and Airbnb host in Jersey City, New Jersey. In 2023, Adeyanju and his friend Samuel Osei-Afriyie, both partial owners of Kọ Café, purchased the building where they had been leasing space for the coffee shop.
They partnered with Nestment, a real estate company, to help facilitate the purchase. Adeyanju, an entrepreneur, now works as a consultant with the company. The conversations have been edited for length and clarity.
I’m a partial owner of Kọ Café, a name derived from Yoruba that means “to build.” We’re a West African coffee shop in New Jersey selling everything from basic coffee, tea, and smoothies to sandwiches, samosas, and Nigerian meat pies.
The business launched in 2023 with five founders: me, my brother, my cousin, and two of my friends.
At first, we leased the café space as tenants for $1,400 a month. However, we learned that the 3,600-square-foot building, which has two residential apartments above, was going to be listed on the market.
My friend Sam — also a co-owner of the café — and I decided to put an offer on the property.
Sam and I depleted our funds when we renovated the café, so we initially planned to raise funds to finance the purchase.
At first, we connected with a Black venture capital group. A deal didn’t work out, but one of the firm’s partners connected us to a real estate company called Nestment.
Nestment acted as our co-buying support team during the buying process. They helped us find the right investors and connected us with lenders. The company also ended up co-investing in the building.
Sam and I made an offer of $740,000 for the property, which was accepted. We own 85% of the building, while investors, including Nestment, own the remaining 15%. (Nestment also received a portion of the commission from the seller’s agent.)
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To finance the purchase, we secured a debt service coverage ratio (DSCR) loan with a principal of $555,000, and our monthly mortgage payment is $5,900.
Our Airbnb income helps cover the mortgage
We’ve been renting out the residential units above the café since 2024. They’re both three-bedroom, two-bathroom apartments, each about 1,200 square feet.
In the beginning, we offered short-term rentals, but have since pivoted to mid-term stays. We’ve found them to be more financially successful and better aligned with the evolving Airbnb regulations in our area.
Our rentals typically last 28 days to a month and cost between $140 and $175 per day on average. To date, we have earned more than $100,000 in Airbnb rental income, which we’ve used to supplement our mortgage.
Courtesy of Isreal Adeyanju
We’ve welcomed a wide range of guests — from college students and digital nomads to groups of co-workers. However, the majority of our guests tend to be families, often in the area to either visit their children at college or help them settle in as they begin their studies.
Our guests get discounts at our café, so the building operates almost like a bed and breakfast. It’s cool for them to be able to grab breakfast and lunch downstairs.
You need trust to co-buy with a friend
When buying a property with a friend, I think the first and most important thing is trust. It was critical for us — especially in the beginning — because a lot of capital was being pooled into a shared account.
The next important thing was understanding each other’s individual goals. Sam and I both recognized that this was a key investment, not just for our future portfolios, but also to ensure the long-term security of our café.
We also had to have a plan for covering expenses over time. When we bought the property, we opened a zero-interest credit card, which I highly recommend to anyone buying a home. We put most of our initial renovation costs on that card and have continued to use it for maintenance expenses as well.
As time goes on, we rely on our reserves to cover ongoing costs, so we haven’t had to pay out of pocket for any expenses.
Courtesy of Isreal Adeyanju
Having a plan for rental management is important, too.
In the beginning, we decided to split the responsibilities for managing the rentals. However, about six months in, I took on most of the management, as my schedule is more flexible.
To simplify the process, we use a lot of apps and AI tools, though we also use the built-in features on Airbnb, such as automated responses, which have helped us minimize much of the back-and-forth communication between guests.
Real estate investing feels less overwhelming with a co-buyer
This building is the largest asset that I own, although I do own five properties altogether.
Buying the building has opened up a new season for me — one where I want to do more cooperative deals, maybe with friends who want to invest or who have capital but are hesitant to invest on their own.
I do think that it feels better when you’re investing in real estate with somebody else. You’re willing to take on more of a risk because you know that if something goes wrong, somebody is going to be there with you.
Courtesy of Isreal Adeyanju
Beyond my real estate portfolio, owning the building has significantly benefited the café. We don’t have to worry about our rent doubling, which is a common concern for many small businesses.
Having ownership has also been a huge advantage because it gives us more control over what happens here. We organize a variety of events, from open mic nights and podcasts to workshops on career advice, real estate, and technology.
Our vision for the café and the building was to create a space that could bring people together, and we’ve done just that.
Axel Springer, Insider Inc.’s parent company, is an investor in Airbnb.
