Realty Insider Blog

Believe it or not, it is possible. There are quite a few restrictions on how it has to be done and what you are allowed to do. But, if you are more comfortable with the real estate market than the stock market, this may be a way to go.

Please see the article here: http://www.bankrate.com/baw/news/ira/20070417_real_estate_self-directed_IRA_a1.asp

The main drawback that I can see is the limited control you have and some tax limitations/implications. The other biggie is that you can not deduct the depreciation. Depreciation is a great way to defer tax, so that one alone may be a deal killer.