Can investors refinance a 1031X Property?

[AJ Wong]

Hey BP,

Hoping to get some advice for an investor client of mine in Oregon that owns a Triplex in California. It is his primary source of income (held in an LLC) but is paid off and he's considering selling or pulling money out for a down payment towards a new primary purchase. Possibly a two home property.

My question is, since it was a 1031X when he purchased it, can he technically refinance it (and for what purposes) without penalty? Or its what cost? 

It's probably in his best interest to hold as he only needs requires $250K MAX in addition to the property he is selling, and can secure a new loan on the new primary.

He has owned it for two decades.

For example; what if he was purchasing another multi family property or what if it was an STR investment? Can an STR investor refinance a 1031X for capital towards another STR (if that's the business?) After how long can they refinance without penalty or risk? I found a good article here but hoping to get some real world feedback from Tax Experts or Lenders and references. 

Thanks!