Isreal Adeyanju co-owns Kọ Café, a West African coffee shop in New Jersey that attracts locals for its food and community events, including open mic nights, live podcast recordings, and workshops on homeownership and career development.
When the café opened in 2023, Adeyanju was renting the space for $1,400 a month. But when the 3,600-square-foot building, which includes two upstairs apartments, went up for sale, Adeyanju and one of the café’s co-owners, Samuel Osei-Afriyie, moved to buy the entire property.
With the help of investors, Adeyanju and Osei-Afriyie bought the building for $740,000. They own 85% of it, and their investors own the remaining 15%.
“Part of the reason we bought the building was so our café wouldn’t face a sudden rent hike,” Adeyanju told Business Insider. “There are several cafés in Jersey that have closed because their rent doubled.”
Since 2024, the two apartments above the café — both three-bedroom, two-bath units — have been rented short-term, bringing in more than $100,000 through Airbnb. The earnings have helped pay down the building’s mortgage.
“The money we make from Airbnb helps keep our business alive,” Adeyanju said. “It’s not about getting rich quick; it’s about being able to sustain ourselves, this building, and build wealth.”
Here are some things people should keep in mind when investing in real estate with a friend, according to Adeyanju.
Buying with a friend can make investing in real estate feel less risky
Purchasing a property that combines a business and residential space can be more complicated than buying a traditional home. It often involves more money, more red tape, and, at times, bigger headaches.
Adeyanju said that buying the mixed-use building with a friend made the whole process feel much less stressful.
“I do think that it feels better when you’re investing in real estate with somebody else,” he said. “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.”
Have a game plan for how you’ll cover expenses
When Adeyanju and Osei-Afriyie purchased the property, they opened a zero-interest credit card, which they used to cover their initial renovation costs and continue to use for maintenance expenses.
“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,” Adeyanju said.
He said that the entire setup would collapse if there wasn’t already a strong foundation of trust between him and Osei-Afriyie.
“When buying a property with a friend, I think the first and most important thing is trust,” he said. “It was critical for us — especially in the beginning — because a lot of capital was being pooled into a shared account.”
Decide who does what and how they’ll be compensated in advance
Initially, the apartments above the home were listed for short-term Airbnb stays, but they later transitioned to long-term rentals. Their bookings now typically last 28 to 30 days and average between $140 and $175 per night.
At first, Adeyanju and Osei-Afriyie shared management duties, but about six months in, Adeyanju took on most of the day-to-day work because his schedule was more flexible.
“With the management mostly falling on me, we agreed to negotiate a management fee or a fee structure that compensates for that sweat equity,” Adeyanju said.
Adeyanju said that setting clear expectations around labor and management helps keep things running smoothly and makes sure everyone feels fairly treated.
Make sure you both have the same vision for the property
Adeyanju said that sharing the same vision for the property is one of the most critical aspects of co-buying — without it, things can become complicated quickly.
“We had to understand each other’s individual goals,” he said. “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.”
He and Osei-Afriyie planned carefully before purchasing the building, considering every detail, from how they would divide costs to how they would manage repairs and a potential sale.
They do not expect to sell the building anytime soon, but if they ever do, they already have a contingency plan in place.
Axel Springer, Insider Inc.’s parent company, is an investor in Airbnb.
Read the full article here
