@Jacob SmithProper analysis of this would be done by looking at your cash flows from making that increased investment (both of your time and $) and then seeing if your payback (or NOI) is in line (or above) with what your expectations are.For instance, what would your costs be to get that extra $150 in rent? 

if its under 4 units just use 2% rule as a good start.. for instance 100k house should bring in 2k/mnth gross income. etc

For instance in a mix use development, if a portion of the commercial space could subsidize or partially offset the HOA fees, would that be a perk that would sway you to buy in that neighborhood or community along with all the other green amenities in the home such as solar and greywater that would offset some or all of your utility bills?

If I'm looking at a region like Bedford for instance, am I going to see a huge hit in rental prices, or is it on a fairly even keel? 

Details below:We are not dealing with an owner in this instance.

For instance, you can tell the tenants that you plan to remodel and would love to offer them $500 (or whatever) to help them find someone else to live.

I have used it in several instances for real estate agent uses.

For instance, there's a FSBO up the street from me that was listed at 485k when similar-model homes sell for about 50k cheaper.

Here are the numbersPurchase price 260000current market value 460000mortgage balance 155000 @3.75% with 15yrs leftmortgage/HOA/taxes/ins: 1525 expected rent: 2450cash flow 925/mo or 11100/yrproperty in good condition not expecting major maintenance or expensesI have a potential renter interested in staying long term 7- 15 years.Given the above information there is a positive cash flow but im not sure if the equity after selling would be better served elsewhereIm not too sure how to use the ROI or CAP rate in this instance. please advise.

We don't know all the information above but you are correct that in most instances you will want to hold a long term rental in an LLC.