I have several clients who have purchased real estate using a Self-Directed IRA.  While there are certainly some risks, and it can seem like a complex process at first, there are some distinct advantages of considering this strategy....

• You can diversify how your investment funds are invested, to better position yourself for growth.
  
  
• Your rental property income will be tax-deferred, allowing you to pay lower taxes on the funds if you will be in a lower tax bracket when you retire and use the funds (as most people will).

Here are several articles that will help you better understand the concept....

 
I am certainly not a CPA or financial planner, so please do consult with your financial adviser before committing to a move to invest in real estate with a Self Directed IRA, but once you have done so, I'll be ready to help you invest your retirement funds in real estate.