Depreciation recapture applies at ordinary income rates capped at 25%, increasing your tax liability.

However, by placing money in a property that I would like to have in order to increase my quality of life, that can also produce some cash flow instead of being a liability that requires money every month, I can increase my quality of life without increasing my monthly liabilities.  

You actually want to INCREASE it.

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

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.

Palm Coast, while not as flashy as Miami, is indeed growing rapidly, with increasing interest from higher-income professionals and retirees.

If you generate enough money annually to dismiss a W2, then consider covering the ever increasing costs of retirement & health care and those do not go at inflation metrics but usually way higher. 

One group wants housing prices to increase, the other wants them to decrease. 

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

Historically, the average days on market (DOM) for rental properties only increases by about 6 days during November and December.