Interesting - I think it may be a good idea to run full returns on your properties - cashflow, plus loan paydown, potentially appreciation and tax benefits.

He is 23 y.o and about to start full time job. 

You cannot fold a full size mattress. 

It's almost a full gut.

Found T&H realty services to be pretty interesting as they provide both buyer brokerage service (to help me find deals) as well as do property management i.e. they are not full turnkey provider necessarily, but reduces some of the hassle for me I guess as an out of state investor. 

Hi Adam,I’ve worked with a handful of great rehab contractors in the Tampa Bay area over the years, and I’d be happy to point you in the right direction depending on what you need—whether it’s a full gut rehab, cosmetic updates, or anything in between.

Earlier in your post you shared that your friend planned to pay the contractor invoice but at the end of your post you ask whether your friend should pay the invoice in full.....and this is after selling the property and presumably being recapitalized. 

He is unlikely to fight back in court when everyone in the house is against him.When he is served notice, ensure everyone is in the home to witness it and present a unified front.

Not saying it's impossible, but that is a full fledged business.

The initial plan was to do minor cosmetic things and bring the kitchen and bath up to date but not knowing this fact made our $5,000 budget go to $50k costing us the two year full rehab.