What would you do? Advice on duplex I currently own

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Hello all and thanks in advance for anyone taking the time to chime in.  I have a duplex in a desirable area of CT.  2 BR /1 BA down and 1 BR/1BA up.  I've always had an issue renting the upstairs because the bath is tiny and due to roof structure, only a tub no shower.  

Right now I have a super expensive commercial loan on it - 9.9%!  The payoff amount is 151k and the current value is around 269k. There is a pre payment penalty of 4285.

I'm going to do a renovation on it which involves opening up the roof, and adding 1 or 2 more bedroom upstairs.  This will allow me to have a larger bathroom with shower and more rental space upstairs.  This reno will cost around 70k.

After the reno, I could get 1200-1400 for upstairs and 1400-1600 downstairs.  2800/month conservatively. 

So my question is, should I raise capital just for the renovation OR raise enough for renovation and paying off the loan?  Any other ideas would be very welcome as well.

Thank you!!