Using a Self Directed IRA or Solo 401K to Buy & Hold

[Elizabeth Lark]

I have a solo 401K. From what I understand; I can use the account to purchase properties so long as I use a non-recourse loan as I am not allowed to personally guarantee a loan using the account. I'd love to know if anyone has utilized their self directed IRA or solo 401K to buy and hold rental properties? Have you found it advantageous to buy and hold in the retirement account vs. outside of the account? (especially if you have not yet reached an age that will allow you to withdraw funds without penalty).

[Bill B.]

It is a horrible plan unless you have ZERO other ways to invest in real estate. 

You don’t get to use depreciation. (You won’t get the ongoing tax break and you’ll be selling or paying the taxes to cash out.)
You convert capital gains income in to regular income. 
When it comes times to start taking RMD’s you either have to sell and face a big tax bill or come out of pocket for all the taxes due. 
You can NEVER personally use, work on manage the properties until you take them out of your retirement account, or your ENTIRE account is considered taxable. 
You pay higher interest rates for non-recourse loans. 
You must never screw up and use a credit card or any other form of personal payment or your ENTIRE account is considered withdrawn and taxable. 
You can not hold them until your death and leave them to your heirs tax free, they must withdraw them and pay massive taxes or sell them. 
You can’t borrow tax free against them with a cash out refi. 
You can not partner with relatives or have them do any work on or stay in your properties. 

Assuming you have ANY other funds to invest instead, what’s the upside to using your retirement funds instead?