While real estate values do rise over time, if you can't cover your bills during the downturns to get you into better times to sell, you are likely to lose money.  

Often the hard money lenders that appear to offer the best leverage actually require more cash when looking at the entire picture.

The HML covered 100% of the $32,500 rehab budget through drawbacks.Refinance: Post-rehab, I refinanced into a primary mortgage, creating 25.5% equity in the property.Future Financing: I plan to leverage the property with a HELOC to access up to $86,000 in capital for future deals.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

If all your concerns are covered, do the numbers still make sense or should I see something else?

Also, take as many pictures as possible before the tenant moves in, again this protects you in case of damage caused by tenant. 

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

It usually doesn't cover for full replacement of your property.

Personally, I bought a 3 bed single family home soon after starting my job and had two friends from college rent which covered my mortgage plus a little extra.

Covering this with my salary is relatively comfortable.