# They dreamt of opening a cafe, they ended up buying the building.

In 2023, They opened Ko Cafe, a coffee shop and creative space for their Jersey City neighborhood.

When the entire 3-unit building went up for sale, they turned to co-buying to pool enough to purchase it.

The building, a combination of residential units and their popular coffee shop, generates solid income for them.

They plan on buying more spaces for community and culture to flourish.

# Check out the full story.

ISREAL + SAM : KO̧ CAFÉ : NESTMENT CO-BUY GROUP ☕️🏠 - YouTube

[ISREAL + SAM : KO̧ CAFÉ : NESTMENT CO-BUY GROUP ☕️🏠](https://www.youtube.com/watch?v=e1ItImOCTOI)  
  
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# What will your story be?

How we calculated these figures

**Home Affordability Calculations**  
These calculations utilize the [Fannie Mae multifamily home loan program](https://www.mortgageresearch.com/articles/fannie-mae-5-down-multifamily-homes/) to put a 5% down payment for a 30 year fixed mortgage at a 6.5% interest rate (rates subject to market conditions) on a triplex property.

**Home Price** **‍**
The total down payment available is calculated by multiplying the down payment amount by the total number of co-buyers in the group. The home price is then calculated by dividing the total down payment amount by 0.05 to simulate a 5% down payment. If the amount is greater than the max triplex loan limit of $1,033,000 then that limit amount is used. Higher loan limits do exist for quadplexes.

**Equity Growth**
The equity growth is calculated by dividing the pro rata projected equity value in the home in 5 years by each member’s down payment amount. The projected 5 year equity value factors in the home locality’s forecasted appreciation along with the principal contribution portion of each monthly mortgage payment. The return is significantly higher than the projected appreciation of the home because it is calculated relative to the down payment amount, which makes for a more accurate measure of return on initial investment.

**Monthly Cost** **‍**
The monthly cost is calculated by subtracting the monthly mortgage amount from the city's projected median rent for a 3 bed unit, and dividing by the group size. This assumes one unit is occupied by the buyer and the remainder are rented out.