Buy and hold in an IRA - Pros and Cons

[Jason Deck]

Does anyone have experience holding property from a self-directed IRA? I am trying to get a handle on what is possible, and the pros and cons? For example, can I use IRA funds for a down payment, or must I make an outright cash purchase? How are cash flows treated? If I later sell the property, is it cap gains or ordinary income?

Thanks in advance for your thoughts and experience.