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Rental Income Podcast With Dan Lane

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

Rental Income Podcast With Dan Lane

Rental Income Podcast

Business, Investing, Entrepreneurship

4.8836 Ratings

🗓️ 2 June 2026

⏱️ 23 minutes

🧾️ Download transcript

Summary

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 increase their chances of success in low-income housing.

https://rentalincomepodcast.com/episode576

Thanks To Our Sponsors:

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Transcript

Click on a timestamp to play from that location

0:00.0

Inspiring interviews with today's top landlords.

0:04.7

This is the Rental M-Com podcast.

0:07.6

And now, Dan Lane.

0:09.7

Mike, tell us why you think cheap rentals are the best type of rentals to buy.

0:15.0

Cash flow.

0:16.2

Easy or lower barrier to entry.

0:19.6

Easier to build a mass around and really get a larger scale business going.

0:25.6

I mean, I think those are the three main factors.

0:27.8

That makes a lot of sense, but a lot of people will tell you that cheap rental properties

0:32.5

look great on paper, but in reality, they never work out that way.

0:40.6

That's not been Mike's experience, and on the show today, we're going to figure out what he's buying, how he's managing his properties, and we'll get

0:45.9

into some numbers. Joining us on the show today from South Jersey is Mike Bonadais. We'll take a quick

0:52.2

break to thank our sponsors. We'll come right back and we'll talk to

0:55.6

Mike. If you own rental properties, you know the goal is not to try to create a second full-time job.

1:01.6

That's why a lot of investors, including myself, use Rent Tech Direct. Rent Tech Direct automates the work

1:08.5

and makes management super easy.

1:17.7

You can collect rent with free ACH payments, automate late fees and reminders, and this is really cool.

1:24.2

They have AI-powered tools that help handle tenant communication, lease tracking, and accounting.

1:28.8

Personally, I love that when I have a vacancy, their tenant screening gives me a full credit report as well as criminal and eviction reports, and that helps me fill properties

1:35.0

faster and reduce downtime. I also love that their accounting tools were built specifically

1:41.0

for rental properties. That makes tax time a whole lot easier.

1:45.4

Whether you have five units or 50, Rent Tech Direct scales with you.

...

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