A real life example is a home I visited yesterday, which needs a complete gut job - kitchen needs new everything, house needs painted (interior and exterior), floors need done in almost every room.

ARV is $135,000 clean out incl demo bath and kitchen  $2000 shingle roof $6,000,    ( inc tare down old roof) complete ceramic tile floor throughout $9000 new kitchen cabinets and counter (10x10) incude stove and refrig  6000 bath 3 fixtures  inc tile walls  $3000 AC/heat (has duct work intact) $6000 Paint interior $1700 replace one window and install new sliding glass doors $1700install base and crown molding throughout

It looks like other properties on the same street that are more modern interior (not fully updated) are selling at $128/sqft to $173/sqft for a more updated interior except outdated kitchen and bathrooms.

One is new though.Then the interior stairwell seemed pretty good.

The last one had a manicured lawn and you'd never know that the only way around the interior were the goat trails from room to room. 

@Mike Buckley The question of who pays for ADA renovations for existing tenants will be based on how your lease reads.I previously worked for a architecture company that specialized in ADA consulting and certifications in CA where we must meet the strictest ADA building codes in the country.Commonly the lease would read that the tenant is responsible for interior tenant improvements, and the owner is responsible for any common areas i.e. parking, accessible routes, common area restrooms, etc.If you are a contractor doing commercial construction you should be building to your local building code, local accessibility building code (if the standards are different from federal), and following federal accessibility building codes.Please feel free to contact me if you have any specific questions I have seen this situation from every angle in California.

So if there was a fire for example in the building, the master policy might pay to rebuild everything up to the studs, but your policy would pay to rebuild to like quality for the interior components of your unit.

I'm an interior designer, so for whatever that's worth. 

I am an Interior Designer in Houston, TX.

I'm assuming full interior paint, and engineered hardwood downstairs and carpet upstairs (maybe carpet throughout per comps) and perhaps some updates with counters and hardware.