I currently have a shed in my backyard that is in pretty bad shape and I'm interested in rebuilding it as an accessory structure again (i.e. not an ADU) on the same footprint and having it as a home office.

For instance having to select from a tenant base of mainly Greasy boots Gary's who work in a factory and might SECRETLY roll their Harley's into the living room to tear down and rebuild the engines might call for a larger deposit, than having to select from a tenant base of retired maids....regarding wear and tear and "Filth"....meaning the average might not be enough if your unit is drawing a tenant type that is HARD on the unit.On the other hand if your unit is having trouble drawing tenants, MAYBE lowing the security below the average for competitors might work.And it's always smart to check references and try to get those who you think will take good care of the place, vs trashing it.Just my 2 cents.

The point is not to invest and rebuild Tulsa.

There are some things you can do with walls, but with floors (other than rebuilding) you are limited to carpet or floor coverings....

We initially targeted this project as a Tear down / Rebuild, but given the amount of new construction currently in our pipeline and a good "feeling" about this going reHAB vs. reBUILD we chose to POP tha TOP!

Big question is the detached garage may need to be demo'd and rebuild which is worrying me regarding the ADU.

For example:  We can do a completed bathroom gut job and rebuild with our team pulling permits (that cost more money) and all for $6000 on average. 

- How much needs to be reserved for my "rebuild my world" fund? 

How much is a tear down in San Diego on the beach worth to an owner occupant who can’t afford to tear it down or rebuild?

Unless there is a Tear down rebuild element happening.. but you start taking what was an Owner occ neighborhood fill it with tenants and your pretty well done on values going any higher than what an investor will pay for a given cash flow RISK / REWARD.