Can You Make Money With Cheap Rentals? This Investor Is. With Mike Bonadies (Ep 576)

About this episode

Mike Bonadies discusses his investment strategies in low-income neighborhoods and the challenges of managing such properties.

Many real estate investors avoid C- and D-class neighborhoods due to crime, older housing stock, and management challenges. Mike Bonadies sees opportunity where others see problems. On this episode, Mike explains why he focuses on lower-income neighborhoods and how those properties have allowed him to build and scale a large portfolio. We look at the types of properties he's buying, what he's paying, how much rehab they're typically needing, and the numbers that make these deals work. With a lower barrier to entry and strong cash-flow potential, Mike believes these markets can offer opportunities difficult to find elsewhere. We also get into the realities of owning low-income housing. Mike talks about working with Section 8 and other government assistance programs, dealing with inspections, navigating government red tape, and why these properties are anything but passive investments. He shares some of the biggest challenges he's facing today, including applicants using AI-generated pay stubs and bank statements, as well as the steps he's taking to verify income and avoid costly mistakes. Finally, Mike reveals the key numbers he tracks and the one thing investors can do to…

People in this episode

Host: Dan Lane

Guest: Mike Bonadies

Topics covered

• real estate investing
• low-income housing
• property management
• cash flow
• government assistance

Keywords

• cheap rentals
• C-class neighborhoods
• D-class neighborhoods
• Section 8
• real estate portfolio

Sponsors

Rentec Direct, Ridge Lending Group

Mentioned in this episode

Organizations: Rental Income Podcast

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