Affordable Housing Apartment Complexes Existing HAP Contract

[Daniel W.]

Does anyone out there have any experience with "Affordable Housing" apartment complex aquisition (i.e particularly those that are already being run with HAP contracts)?

We are looking for apartment complexes in the 40-80 unit range with solid cash flow. Much of what we are interested in are market rate, but I have run across a few that look like they might be good deals that happen to be set up as low-income properties with HAP contracts, etc., etc. We are looking at one right now that has a HAP in place until 2010 so by my logic, we would be able to convert to market rate at that time or stay with the affordable route if it's doing well.

I would welcome any advicefrom those who have experience with this niche part of the Multifamily business. What do I need to watch out for that differs from market rate complexes? Advantages? Disadvantages? Good, Bad, Ugly? Big pitfalls...etc. etc.?

Thanks!
Daniel