Loans from Deferred Compensation Plan (Retirement)

[Mark Koontz]

Good Morning, 

I have heard of people using their deferred comp. retirement accounts as temporary loans to fund rehabs, buy properties, etc. The terms are listed below: 

-9.5% Annual Interest; but you pay yourself the interest. 

-1-5 year terms

-Up to 50% of your account balance can be loaned (50k max)

One of the issues I see is that the account is funded with pre-tax dollars. So I would be paying it back with after tax dollars to only pay tax on them again when I retire. Also, the account grows at half of the rate while the money is out. If I can get a 15-20% ROI (appreciation, depreciation, cash flow, mortgage paydown, write offs), and 9.5% on the funds I take out, would that be worth getting double taxed? I have averaged an 8.3% return over the last 6 years.

I am wondering if anyone has personally taken advantage of this.
I have a W2 with 19 years until retirement. I do REI on the side.