if you are looking for a cheap, central and nice B&B in Central Budapest, I really recommend you this one: www.oktagonbnb.com

I have been there twice and the lady that runs it is very friendly, speaks any language you can imagine, and was very helpful in directing me around the city!

I've been to this hotel and I can tell only good things about it. Location is absolutely central, rates are quite alright and the breakfast was a good one. The staff was very friendly, too.