If the banker thinks this is sketchy then the banker most likely works only with primary home owners and should not be part of your team. 

I would meet with a few bankers, discuss the situation, and see their suggestions.

Think about six old bankers in business suits, and an underwriter standing before them in person presenting you and your transaction, the way it was commonly done >70 years ago.

Cash-out refinancing usually only lets you take back out 75% of the appraised value (check with your banker) so assuming your place appraises for $440K that means you could take out @330K after you account for what you still you - you would be walking away with @ $200K cash in your pocket while still keeping this home and cash-flowing $1k/mo.

We have a real estate agent and a banker What are you going to teach your kids about 💰 and buying 1st property?

FSBO ads & signs Home Inspectors I Buy Houses Ads Magnetic Car Signs Market Conditions - Unaware Media - Radio/TV/Paper/Mag Mortgage Banker/Broker Moving - Estate Sale Negotiable Neighborhood Farm Network with professionals Network with service people Newspaper Ads - Tuesday Owner Will Carry Open Houses Postal Workers Post Cards Quick Sale - Fast Closing Radio/TV Spot ads RE Agent Ads/Expired MLS RE Agent - No Equity Prop RE Agent - Stale/Junkers Referral Fee Offerred Rental Ads - Over 2-3 Wks Run your own ad - I BUY… Sell Your Home in 24 Hours Signs/Shirt Ads Specialize in hard to sells Title Company Utility Workers VM-I Buy/Rent-to-Own Wholesalers Yellow Pages - Full Page Ad

job = whichever will pay you the mostreal estate = go owner occupied & rent out parts of the propertycall banker to apply for loan. 

Nelson Nash-becoming your own banker to see if it's a good fit for you or not. 

Dan, Tim Newton Coldwell Banker in Morganton does a lot of business.

It's usually jack-*** companies like Hilton Hyland, Coldwall Banker, and Keller Williams (the worst one).They usually have a sales person call who has a british accent, and this person talks to you like you've known each other for years.