The new account would allow the tax benefits to continue, but the earnings would be used to grow the account rather than generate immediate income for yourself.

Every Lender is going to be a little different, with no background they aren't going to give you much benefit of the doubt. 

Plus you would benefit from them paying down the home loan and from potential appreciation.

@Sean HarrisonIf you're self-employed, you might be eligible for a Solo 401k, which offers many benefits over a self-directed IRA: Compared to an IRA, Solo 401k contribution limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)I'd recommend you reach out to a few providers who regularly post here on BP to get a better understanding of your options.

I have a property I'm my crosshairs, but before I pull the trigger I'd like to get some community feedback on the best entity to purchase under for tax benefit and personal protection.

First off, exclusive access to the MLS 24/7, the ability to create other income streams in the RE Business, i.e. representing buyers and sellers, and the added benefit of knowing the ins and outs of a real estate contract and how to negotiate in my parties favor.

It will expose you to numerous ideas about money and real estate and you can begin to narrow down what kind of investor you are wanting to be and which strategy you want to take.

I have had numerous 'deals' brought to me that had overlooked (obvious) problems that blew the budget, pricetags that were too high to begin with. 

All those loop holes have been shut down to prevent people from gaming credit card companies for rewards benefits.

I am trying to run some numbers here and see if the cost of a cash out refinance is worth the benefit.