I am now at the point where I want to learn how to raise private money, learn how to under write smaller deals, learn wholesaling and utilize my next five to seven years quite wisely combining my building skill sets, circle of influence  with wealth generating skills. 

In this case however, since I'm raising debt, my profit comes from the deals.

This raises a question because we had a lease agreement on file showing a rental amount of $2,000 per month."

Any legal issues I should be aware of in this situation? 

Not aware of a lender that will allow a rookie to do this.Recommend either starting smaller and working your way up to this or partnering with someone you can learn from that can be your lead with lenders, etc.

The previous owner took exceedingly good care of the building and there was nothing that need to be done except to raise the rents.

I'm born and raised in Houston and now work with a full service long-term rental management managing over 300 doors - all SF or MU (up to 4 unit).

Is anyone else aware of reasonable alternatives?

Their plan is to raise rents (on the poor remaining souls, improve infrastructure and exert some sweat equity. 

They are using a Reg D 506(b) offering if raising from non-accredited investors.