401K Loan vs Personal IRA

[Tim Haenn]

I am in the early stages on evaluating some investment properties. I am currently a homeowner and this would not be an owner occupied home therefore I expect to put 20% down. To fund the 20% I'm considering all options, including a loan from my 401K. I do see another option and I'd like to understand pro/cons. I recently joined a new company and have enough money in my old 401K account (now an IRA account) that could be used to cover the down payment once I move it to my new employers 401K. Is there any added value to converting the IRA to a self-directed IRA and using that instead of a 401K loan? If I'm not mistaken I have one shot at this - if I roll it over then I won't be able to use it as self directed IRA so I want to make sure I'm missing nothing when considering my options.

Articles to help me educate myself are much appreciated as well as comments!