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What nationality are you? You might be able to go over for a while without bothering with getting a visa - see the tourist visa section of the Visas for Hong Kong page.
If you want to work you will need to find a job and then apply for a work permit. I *think* you can do this wthin in Hong Kong without going home on a visa run (and then returning on the correct visa). You will need to have a letter from an employer (job offer), business documents (to show the business is legit), and documentation to show that the job can't be fulfilled by a local (usually including degree certificates).
You will need to find a job that can't be done by a local, so as you don't speak Mandarin bar tending is most likely out unless you find a very sympathetic manager who will argue with the authorities that you were the only person who could do the job - although anyone willing to do this for you will probably not pay you much. Your best bet is teaching English, although again, the fact that you don't have a degree will mean you'll need to take a job at a less-than-ideal school which is willing to overlook the fact that you don't have a bachelor's degree (usually a prerequisit for teaching anywhere in the East) and which therefore won't pay you as well.
In a nutshell, I think you might struggle to find something. Maybe you could treat the trip as a fact-finding holiday where seeing your friend is the main point - then look for something while you're there, but don't spend all your savings going over there if it means you'll be bankrupt if you can't find a job.
Hong Kong has higher expectations of its English teachers than other ESL destination countries in the East. Still, since you are a British first-language English speaker you will definitely find something. You may want to time it so you arrive before the start of the school year in August, or before the fall term in January/February if you go this route. You could also tutor kids privately, although without a full time job as well this would technically be illegal.
It's good you can stay for as long as that - you have time to look around and so you might get lucky with bar work. It will depend on the place. Perhaps your friend could do some advanced research for you by handing in your CV at some likely looking places and see what they say.
Of course you could always try to work illegally and leave/re-enter HK when your visa is up, but its hard to know whether this will fly with immigration officials - it depends on whether they figure out what you're up to, the mood of the official that day, etc. There are people who manage to live in HK for years doing it this way, although I don't recommend it if you value peace of mind :) ...but you could treat this route as a last resort back-up plan!
To answer your other question, accommodation in Hong Kong is very expensive - one of the highest in the world. You might find you need to share a place with someone.
I don't have specific experience of this situation, but I know that there are plenty of people working in bars out here that don't speak Cantonese or Mandarin. I am not sure what their visa status might be and I'm not sure if bars/restaurants would be opening to sponsor you for a work visa, but that said, many Bars have Western Managers over here, so who knows.
My suggestion if you really want to try, is to come over for 3 months, don't burn your bridges at home, head straight to the bars of Lan Kwai Fong and Wan Chai and ask around as to what's available and how it's done...OR if you friend is really keen for you to come maybe they could get chatting to a few people in local bars next time they are out and about?
Hope that's helpful, and if not please ask more questions!
Norma