Substantial upgrades on a WRX motor which is a boxer engine really means substantial. I'm assuming full block and head build including a way bigger turbo injectors and ecu work. Owning a couple of boobaroos and evos back in the day I know a little about these things.
Closest I ever got with a evo motor was 650 horse and that's after a full Tomei stroke job, gt40 turbo, ethanol injection. On pumped gas she only put out 550. All that just a bit under 15k.
Not doubting your friend but getting 700hp out of a 4 cylinder turbo motor is pretty hard to do unless you have Fuc*k you money.
If you can get your hands on that boobaroo motor and slap it into a boat that would be simply bad as*.
Don't forget a 700hp 4 cylinder motor unless built properly is very unreliable. By properly I mean at least 20k into it.