Would it upset me that you wrote a three dimensional character? No, I know racists who are great, helpful friends, loving spouses and parents, people who'd jump on to a busy street to rescue a stray kitten, and who are the light of a party, many even have non-white, non-Christian friends (like me e.g. These friends of course being the exception to the RULE). Despite all their good qualities, I still find them difficult to be around, and as I have gotten older, I've kept as much as a distance as possible to them.
What I wouldn't like, would be if the purpose of the story was to promote racism and where it was obvious that the author was a racist, attempting to defend his views, but that's not the same as having a racist character with likable traits.