Think it the other way, if they both refi, they will have 0 cash
also almost 0 cash flow on the house. The risk of failure will be higher.
If it is all cash stuck in there, that is not the right way for this biz.
They can negotiate a deal, or 1 side buys out the other side.
The 100k cash guy is an inexperienced, sturbbon, and lazy partner I can tell, aka. not a good partner.