Request a copy of the LURA, mortgage note and any other use agreements or documents you can secure from the current owner.With LIHTC the return on investment is typically secured in two ways - the general partner is securing a developer's fee in the early stages of the property as a "reward" for doing the transaction, and the limited partner (investor) is receiving their tax credits benefits over the first 10 year period (in addition to real estate losses).By coming in at this point, you're not getting the up-side of the developer's fee, and you're not getting the passive return of the investor.

Dennis Nemitz,Here is a broad viewpoint on this issue of raising rents or not for your consideration.Clearly, you must maintain a positive cash flow, one that will provide an acceptable return and reward on the risks.

While the terms of the deal make for a solid investment for the seller, I find often times that folks simply aren't willing to wait until the balloon is due to reap the rewards of their investments.

Toughest and riskiest deal of my career so far, but the most rewarding and the most lucrative (not for long, though).

Risk and reward/return are inextricably linked. 

The idea isn't to tell you what to buy, just to give you the info you need to assess the risk vs reward of what you are buying.Good luck out there playa.

Is this still a deal you want, or could you find something else with less risk and equal reward?

No matter how you sturcture ownership and liability, there are pros and cons to each method and that needle between risk and reward will move in relative terms based on your structure. 

I think it would prove to be very challenging and not as rewarding if it was me.

Low risk, monetary low reward, but knowledge you gain is big reward.