Are you sure they are legit renters and not put in there to boost up the numbers?

Needless to say, I feel they are not going to respond favorably to my dramatic increase in rates.

I'd recommend getting a few deals under your belt and to keep track of the results with the goal of using them as a confidence boost for future potential partners/private investors. 

..once you are negotiating with the bank and agree on a NET PRICE to them, you can boost the purchase price adding in all rehab costs as part of the deal..you can even have the bank give your Buyers Agent Realtor a $2000 bonus which in most states your realtor can REBATE to you on the closing statement (limited to a max of up to 1% of the agents usual 3% commission..so there's probably a few extra bucks going to your realtor in the end and she will love you for that. 

My husband and I are in our first NOMAD home with plans to use this and the conventional way of purchasing several buy and holds, as well as, lease options for some short term options to boost cash for the long term purchases.  

I needed a final, "move on" boost! 

My original credit facilities were to buy court house steps.. so we needed cash on the barrel head so we started with a 4 million dollar unsecured LOC.. we used that cash to buy then we got the appraisal etc and tapped our holding line which bounced between 6 and 8 million.. it was pretty sweet.. you talk about advantage at the court house steps.. walk up with a couple milske in cashiers checks.. and if I did not use them that day the money was never taken from my account and I was not charged for it.. this is what great banking relationships will do for you.. then in the melt down of 08 that bank was the only one of 5 I dealt with that kept my credit lines in tack but they shrunk dramatically of course..

You lose tenants and your rental income goes down dramatically and you can no longer pay the debt on your mortgages without dipping into your savings.  

This would boost our savings to about 45% of our income per month. 

If you're combining IRA cash with a non-recourse loan on a rental property, you're going to have to pay UBIT which will eat into your returns rather dramatically.