LIHTC (Section 42) Apartment complexes

[Carl Cisler]

I have interest in a 40 unit LIHTC apartment complexes. It was built in 1999 and is past the initial 15 year period. The agreement they have in place is Low Income- all 40 units must rent to tenants with income 60 percent or low of median income. Because of this rents are low $400 for 3 bedroom and $350 for 2 bedroom. The cap rate is 8.2. What is the plus and minus on buying section 42 properties. Thanks in advance for your help.

[Melissa N.]

I know this is an old thread but we are looking at a property that has a LIHTC. It is entering the extended use period (no more tax benefits). Property is listed for $25k per door. Average rents are $540 with a $72 credit for utilities. I don't quite understand the utility part. Would I have to pay some of the utilities if they use too much? 

It's 55+ only community. I'm not sure if that is part of the contract or if it was the owner's choice. I'm meeting with the seller today to discuss and the numbers look attractive. I just don't know what I don't know about this sort of property.