Using self-directed IRA funds to invest in rentals -- anyone?

[Blair Treu]

I own rental properties in Mesa AZ, Las Vegas NV and Memphis TN -- all purchased with the traditional loan (typically 20% down) and they are are moving along nicely in terms of their overall returns. The properties in Mesa are now fully paid off and the Memphis properties should be fully paid off in 2 years giving me a nice little income stream into my retirement which is only a couple years away. So here's the big question; has anyone tried purchasing properties with their self-directed IRA? I'm aware that there are restrictions such as; you can't take depreciation and the properties must be paid for in full and owned free and clear (no loans) and that my IRA is the "owner" of the property not me personally but I own the IRA. There are other restrictions of course but I wonder if any of you have tried this and had success?