HUD PBV properties (Section 8 - HAP Contract) vs. market multi-family

[Mark Soreco]

For my 1031 exchange replacement property, I see some HAP contract properties with impressive gross rents for the price, so I have been looking at some of the financials and learning more about this type of investment.  I'm clear on the fact that expenses including management, auditing, and admin will be significantly more.  One particular property has a 92/100 REAC score and 6+ years left on the existing contract, in a stable low-crime suburban area.  Existing property management would stay in place.

Curious if any members have done this type of investment before and their experience with management, dealing with HUD, etc. Do you feel cash flow and overall ROI are worth the added overhead and other headaches? Any risks I may not be considering?