ONe of the best places to be in the contracting business.Wow Jay, that's the first I've heard of a mechanic lien being placed ahead of a 1st mortgage. 

If buying first rental Rents that the appraiser says are the market rents less 25% are added to the income number and the PITI+HOA for the rental is added; plus all credit card payments/autos/child support... the back end ratio.

I have heard it justified as a retention mechanism, timely rent mechanism, gratitude for upholding the lease mechanism, etc.I am the best landlord my tenants will ever have.

My current non mortgage situation:2 auto loans. 3.7% -we pay 1000 per car. 2k total (paying extra and have 28 months left of this)1 student loan - 5% 150 a month and 17k total left.

I even owned my company for several years in the beginning with no auto insurance and no liability insurance.

If you are going to do it, I would strongly recommend a written contract, get an estimate from him, pay only per the contract (not hourly, daily, etc), Require General Liability, Workers Comp (including coverage for him) and Auto Liability

We have our primary home, auto, and an umbrella policies with one insurance company. 

Outside and mechanicals were all in excellent condition but interior was very outdated.

The LLC is a separate entity from you and normally does not own the contents of the house.An umbrella policy provides an additional limit of Liability that kicks in when the limits of your homeowners, auto, boat, RV, ... are exhausted in a claim. 

I requested them that I will pay half the amount but they're threatening to put a Mechanic's Lien on Property for non-payment.