Private Investor is willing to bank refi in his name. Good idea?

[Dusty Cady]

Hi - I have a 2 unit investment property that I bought with a private investor (who is a close friend). Now, the plan was for me to refi, pay him back and move on to another property. (he wants to keep investing). We are mid refi right now, waiting on an appraisal which are taking longer than normal.  The problem now is I was laid off last week due to Covid so I no longer have my salary to qualify for the refi.

My private investor lender is willing to get a bank refi in his name so we can pull the cash out but I am not sure how we would structure the deal. Here are the numbers. 

Purchase Price - $340

Private Note - $325K

Rehab - $45K

Total: $385K

Rents: $3,100

ARV - $475K

My fear is that if he refis I would lose the equity I built as well as the money I invested. Has anyone done anything like this or have an idea of where I can get refinanced without the w2 income? We are trying to move fast to put that cash back to work. 

Thanks!