However, with the rise in interest rates, I am fairly certain that a threshold ratio of 1 will not be met. 

Not sure what is available in your market but often there may be an estate sale where the property has been neglected and the heirs just want their money so you may purchase at a discount.

Hi Rob,If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money. 

If possible I would want the amortization over 25-30 years.I know cash out refi is quite expensive with the origination fee and everything, early pay off could cost too or drive the rate up.

While I have some basic knowledge, any advice or tips for the purchase process would be greatly appreciated.Asking price: $460,000Mortgage Type: FHA / Fixed Rate / 30 Years / 3.5%Unit 1: Primary ($1700)Unit 2: Tenant ($2000)

One possible answer is no extra rate increase  but better occupancy numbers.

You've experienced the appreciation so far at a reasonable rate, so what has happened that would make you think that would dissipate? 

Another valuable skill to learn is how to find off-market or deeply discounted properties.  

The current interest rates 6.9%-7% kill my numbers for an investment property because the mortgage payment already comes out to $1,300 a month with the big 4 included.

So, I would explain this to them that if you sue their insurance will kick in and pay and their rates will jump.