Va Cash - Out refinance underwriting problems

[Fred Sena]

Hi Biggerpockets community,

I need some help in regards to this peculiar situation.
A little background info, wife and I bought or second property with a VA loan its a 4-plex in need of serious updating almost a year ago for roughly 275k loan amount of 245k
I recently finished the remodeling and we had the va appraisal done for a va cash-out which came in at 400k which us a bit low due to lack of comps in the state. 

We plan to pull out about 100k to pay off some the debt from materials for the rehab and use the remaining balance to purchase our next two properties.

The funny thing is that my loan officer stated that the underwriters were unhappy and disapprove of the use of funds being used to be additional properties and said it would be better to rewrite the letter stating we were using the funds to take a lengthy trip overseas somewhere. 

Was wondering if this is a common situation with underwriting VA cash-outs.

Thank you