HELOC on a LLC owned investment property? - HELP!

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Please help a newbie out! I would love some help and/or advice on my next step. Here's my situation: My partner and I own a single family home through our LLC and bought it outright, all cash deal. We paid $303k last year for it and just got an appraisal back at $346k, which is in-line with what we were expecting. Rental income is $2k/ month and our cash flow is $1,685 after tax, HOA, and insurance. I feel we're in a great spot given the equity, cash flow and not having a mortgage. Our area is hot right now with new builds popping up everywhere, A+ school district and a ton of fun things to do for families..

But... I'm having trouble finding the 'best' strategy for our next step. I understand I can't take out a HELOC due to the property being in a LLC (and we do not want to change the title) so here's my thinking. Pull out cash from the property via commercial loan and use it for the 20% down payment on a second property, then finance our second property via the commercial loan route since it will be coming from our LLC. My goal is to not use any cash, or very little, out of pocket. I understand then I'll be paying two loans essentially, one for the down payment and the other on the mortgage. There are other properties for sale in the same neighborhood, at the same general price-point that will get similar rental incomes that we have now.

Am I on the right track or way off? I'd love to hear some examples of what you all have done in the past or other strategies I'm not aware of. Any and all advice is welcomed and I thank everyone in advance.

[Doug Pintarch]

Originally posted by @Ryan D.:

So as others pointed out, speaking specifically about cash-on-equity, the return is poor. This does not necessarily mean the entire investment is a poor one, as there are multiple ways to make money in RE. Your real return here is relying on equity appreciation, just be aware of that, and equity appreciation is (almost) always speculative. 

That being said, there are a few things to note concerning your plan to pull out equity:

1. This is a residential property, not a commercial property (anything 4 or fewer units is considered residential), hence you can only get a residential, not commercial, loan against it. 
2. I am not aware of any lenders who will loan on a residential property that is titled under an LLC (they may exist, but I've never heard or come across them). You will almost certainly have to pull this out of the LLC and put it into someones name to get a loan on it. This is certainly not a show stopper.
3. Once you put the title in someones name, you can then get a loan/HELOC/etc against the property (recourse against the person in who's name the property is titled). After this is established, in most cases you can then deed the property BACK into the LLC. Easy peasy.

Ryan this post answered a question I was going to try and find an answer to before I showed my true newb status and asked it again.  Thank You.   :)