How will the partnership cash flow cover the HELOC payments if interest rates increase?

Higher assets or cash in the bank increases what is called you compensating factors which banks/lenders use to qualify.

My estimation was with leverage I could do about 7 homes a year and each year after it would increase. 

Over time, rents may increase, improving your cash flow, and you’ll gain equity and valuable experience managing tenants and property operations.

Also the school districts have been increasing property taxes in A LOT of investment properties thus eating some of our profits. 

Currently we are seeing STR owners posting for sale due to reduction in prices they can get per night and the vacancy rate increasing. 

Thus, when a foreclosure sale is held, you can set the bid amount up to the amount of the total debt, which would likely increase from 80K to include the legal fees, receivership costs(we suggest 5 - 10% of the rents collected), repair costs, additional accrued interest, minus rents collected.

Start by leveraging what you already have—consider tapping into equity through a HELOC, house hacking again with an FHA loan, or increasing cash flow by converting a unit to a short-term rental.

The shorter the prepayment term has an impact on increasing the rate.4.

You can earn strong appreciation but also lose a lot as the entire state becomes increasingly hostile to landlords.