However, value can be added in other ways as well.

Any renovations prior the property being put in service as a rental in 2015 would be added to basis.

Per lease if anyone not on the lease is staying over 2 weeks I must be notified, they must fill out application, pass criteria and be added to the lease. 

Will be adding an additional bathroom on the main level.

Since this property would be adding these "space additions", what you will most likely be gaining is a faster rent/sale...not likely an increase in rent/PV. 

The cash-out amount would be a separate agreement between us, aside from the refinance.I'm really just trying to wrap my brain around the logistics of how he'd be added to both the loan and Title, while simultaneously removing myself.

In this case, I would be adding 2 bathrooms and a kitchen.

Fannie Mae and Freddie Mac released statements yesterday that they will be adding a 50 basis point (.5%) to essentially all cash out and rate reduction refinances that are locked AFTER September 1 (The exception being construction to permanent loans).

Cash buyers will call or text and ask to be added to your buyer’s list.

the Portland City Council approved a limitation on rental housing application fees during its August 3, 2020 meeting, which will be added to the City’s Code, Chapter 6, Buildings and Building Regulations, Section 223.1.