Sometimes time/role can represent some of the money, like the person signing on the initial loan if there is one, or the refinanced loan like you mentioned below.  2.

You might come out better doing a full 1031 and then refinancing immediately after to get the cash.Just remember you’ve got to have your 1031 started with the closing of your sale.  

He was looking at refinancing the rental to kick off a higher cash flow.As we were talking he said, “I could just pay off the balance and have even better cash flow and 100% equity.

Delayed financing allows a buyer the competitive advantage of an all cash offer, while then almost immediately refinancing into a conventional mortgage to return their cash. 

My question is that my ex got one of the properties as I stated however, he has not refinanced and removed my name and now he has filed for bankruptcy which means that he can't refinance the property. 

I will most probably sell in 2 - 5 yrs does Refinancing makes sense now?

I would echo both responses and think you should explore the options of refinancing the property post-flip if the numbers work to cash flow. 

This loan will have to be repaid / refinanced medium to long term, so he will have to repay his US loan with Zloty proceeds...

I am also aware that I can add a 2nd ADU on a multifamily, but it will cause lending issues when it comes to refinancing or selling.

His strategy was to do the bare minimum for collections and just wait until eventually people refinanced or sold homes.