How do I level a small yard?
Consider renting a rear tine roto-tiller. They are very easy to use and very effective in breaking up hardened/packed soils. I would advise tilling to a depth of 3 to 4 inches. Buy a landscape rake. This is an aluminum rake that is about 3 foot wide with strong rigid tines for sifting out stones etc, and a scraper edge on the top side that is used to level and move soil.  After you have loosened up your soil, you can add amendments, starter fertilizer etc if wanted, level out the area with your landscape rake, reseed, and roll it flat (optional) if you wish. Midwest Rake 10030 Aluminum 30 Inch Landscape Rake  apx $40