Mh good for starting and veg. For seedlings I would say 30-36" or so above plants. Then you just kinda watch them and see how they do. If stems stretch you can lower light a little. If it looks like too much light you can move plants to side or corner of tent where intensity is lower. Should be pretty good in that range though. As plants develop you can certainly run the lights closer. But will be a little while before you need to worry about that.
Fwiw I prefer potting up. You can also start and finish in same pot, but seems to be little more rapid growth going from party cup to larger and maybe even a second transplant to final pot. But you want to be careful not to disturb root ball anymore than necessary. And sometime to help with transplant shock helps too.
looking good I think 
the heat would be my only concern-