How should I invest my self directed roth IRA?

[Kerry Mertz]

I have about $30,000 in a self directed roth IRA and I keep going back and forth on how I want to invest it. These are the options I'm considering:

1) Get a non recourse loan and use it as a down payment on a buy and hold single family property. My hesitation with this option is the UBIT (which I don't know a whole lot about). I'm concerned that it will eat away at my profits.

2) Become a private lender or invest in notes. However, I'm not sure how to get started with either of these. The little bit of research that I have done tells me that to get a decent return I have to be an "accredited" investor, which I am not.

3) I can withdraw it from my IRA, pay the 10% penalty (it's a roth so income taxes have already been paid) and it use it as a down payment on a single family buy and hold to add to my portfolio. This is the option I'm leaning towards at this point unless I can find out more about the previous 2 options. If I went with this option, I would then set up a solo roth 401k and put the money back into a retirement account over time.

What would you do?