Anyone planning to stay in Managua on a slim budget should try Guest House Santos, Barrio Martha Quezada. The low quality is compensated by the low cost, around $9 per night, and the interesting crowd that usually stays there. The place is surrounded by low cost places to eat and drink as well as a number of Internet cafes, and is very near the international bus station. The barrio itself is a run down part of Managua and has a reputation for being dangerous at night.
Other places to visit in Nicaragua are San Carlos which is a small chaotic town where most people stop over night before travelling to El Castillo down the Rio San Juan, which is also a must for any visitor to Nicaragua. A real paradise. I read A Nicaraguan Journey: Memories from the Land of Sandino before I visited Nicaragua. It gave me a good background to the country and helped me decide where to visit when I got there.
One block north and 1 1/2 blocks west of Tica Bus, Barrio Martha Quezada
+ 505 222 3713