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.  

@Juan Alvarez as Jaysen stated if the words "finding out" are thought or used in any instance you should reconsider.

In the other instances where there are other factors, you have the opportunity to shine and that's when you jump on those.

Inquire into why it is assignable, for instance: to whom it is assigned and why, and how much the new buyer is paying the original buyer - AKA – an assignment fee.

For instance, some lenders require a 1.20 dscr and some require a 1.30 dscr (debt service coverage ratio), etc. 

For instance if I have an 8unit that has old painted cedar shakes and original 60s windows.

I've helped to purchase a couple of buy and hold condos, I've located flips (but didn't represent the buyer in those instances) and have represented the buyer for a 4plex.

What was Don Quixote famous for - oh yes - trying to collect back rent from long gone tenants!

The typical landlord favored lease if an exclusive is given has it more narrowly defined so that other types of tenants are not included in this broad language.The other part is for instance a clause stating what percentage makes up the business.