I tried to get a HELOC on my rental property, but the bank denied me for a low loan-to-value on the property.

i am a reo broker here in south florida and work with many current asset managers and several banks. we sell many reo properties. some of those lists floating around out there are dead end streets as so many bomb bard the asset managers with requests they dont even reply 1

Hi Leo, Foreclosure.com typically lists pre-foreclosures, auctions, and bank-owned properties.

also noting most people arent' aware but the credit score run by a mortgage lender and say a general lender like a bank are actually going to be different scores (and likely slightly different ranges) - with some greater weights on mortgage debt for the mortgage lender Credit Bureau settings

I have enough cash in the bank to purchase a small  2bd, 1ba SFR (already cash flowing/w tenant) outright.

It is better to set it in the bank and do nothing than squander it away on toys, or let it get leeched away with daily living expenses.  

It sounds good in theory to split one into more, but you want to keep banking equity on this one as it requires nothing from you and pays you money which is the whole goal of real estate investing.

But now I'm getting check from the title company and have to put that in the bank. 

Trusts- Make your bank accounts TOD time of death.  

Since the property is free and clear, you might consider reaching out to local banks or credit unions, as they often have more flexibility for smaller loans.