Both have not been court battle. 1st tenant I did get collection agency to find and collect my $10k back. 

However you can hold back money in the hope they will not fight your decision and take you to court.

Unfortunately, to get an invalid lien removed you have to go to court. 

The principal amount of this Note may be prepaid, in whole or in part, at any time without penalty.Should suit be commenced to collect this note or any portion thereof, such sum as the Court may deem reasonable shall be added hereto as attorney’s fees, the LENDER agrees to pay the costs of such additional sums as a court may adjudge reasonable as attorney's fees in any suit.

Could cause a issue if it went to court and this person did not take care of the  water issue that caused the mold.

Went to court, tenants showed up.

I recently joined CCIM in Austin so maybe we'll cross paths at one of the functions.  

@James Masotti   pref at 8 t o 10  with IRR 20 plus... and if your buying SFR rentals 20 plus IRR over a 5 year hold is almost impossible.I don't see SFR's as a great investment vehicle for larger partnerships UNLESS the operator is buying at court house steps or other Highly distressed RE and they are coming into the product UNDER current market value by a nice chunk...

They were sued in federal court over this process from someone because it is a violation of their constitutional rights. 

They could put their rent money with the registry of the court and hold up your eviction