Dont mind no electric for little or no capital gains.  

Purchase price: $209,000 Cash invested: $28,000 Sale price: $880,000 This was the house I grew up in.

You're going to start bleeding cash hoping that it works. 

Seeking a higher LTV cash-out refi.

(online payment, venmo, cash/check, etc).Please provide proof of utilities paid on time and in good standing for water/sewer and trash/recycling.Are there any unresolved tenant disputes, outstanding repair requests, or complaints from any existing tenants?

I plan to upgrade to 2 bathrooms after the cash out refinance.

As it is now, the cap rate and cash on cash return is not great once I calculate it out.

After rehab is complete, you can work with a lender to do a cash out refinance and get into a conventional loan where the interest rate will be lower.

I have a friend who purchased a distressed property with cash and is looking for a hard money loan to complete the rehab. 

It is my understanding that it would be mutually beneficial for him to put all or much of his earnings towards closing costs to lower our cash out of pocket for closing.