:(I have been able to raise rents on a few properties to get everything covered, but a few of the houses would be at a price point that would be nearly impossible to rent out in our small town.

Or maybe not so near future, considering the IRS notoriously being decades behind on technology.Once your return is on an auditor's desk, he decides on the scope of the issues to be raised.

They say that the money raised will go toward reserves. 

This is just for practice for now so the most important thing is just looking at the numbers to gain an understanding, don't put too much pressure on it at this point, it's a muscle you have to build by doing reps. 2.

Most people get a yearly raise.

If the money is coming from the government (We the People), it won't raise the prices of houses because that expenditure is not coming from the builder, lender, or selling agent. 

It should also contain the procedure for requesting maintenance, paying rent, rent due dates and late fees, and if you plan to raise the rent soon, may as well give notice of that too.

It seems this turn key provider is quite the peddler with an excuse for every concern you raise which would give me additional pause.

What are the must knows for raising capital for private money or hard money lending?

The current owner’s strategy has been longevity with good tenants vs. raising the rent to keep pace with market pricing.