I have to say this is a little bit ingenious, even though it is obviously fake!.   

I am putting a bathroom into my garage, i have to even out my split-level floor and fill it, will have a kitchenette and the front sliding garage door will remain from the outside, but inside, there will be an insulated wall.. and they might trench a couple feet outside to run the run the bathroom piping and link it to the front sewer.

I use slide show ads and choose the pictures very carefully.  

(are you a glass half empty or half full kind of person?)

However, I just found out one of the tenants who was on a month to month lease will be moving out September 1st (our move in date).So the question is:Do we use this opportunity to upgrade that unit which would include adding a sliding glass door in the kitchen, removing the wall separating the kitchen and living room, and tiling bathroom floors?

I am reading the book 30-day stay around the Medium Term Rental strategy right now and a great hack they mentioned was converting the primary suite into it's own unit if it has a separate entry via a sliding door, etc..

If you let somebody slide once, it will happen again.I don't insist that tenants are non-smokers, because there's no way to control what they do outside, and they'll tell you they don't smoke if they think it will result in not getting the rental.

Just click on the magnifying glass in upper right and learn why. 

Is there some sliding scale of money I don't know about. 

Since you gave the rose tinted glasses scenario in case of default let me give the other side of the coin. 22yo E-4 gets married and buys a house out in town, rolls his funding fee into his mortgage and lives there for three years.