Cash Reserves + Self-Directed IRA

[Mark S.]

I'll divide this post into two parts: Cash Reserves and Self-Directed IRA.

CASH RESERVES
I realize every lender is different, as is every investor. My question is how much cash reserves - after down payments, closing costs, etc. - would the "average" lender like to see? Also, how much cash reserves as an investor do you personally like to see?

I'm personally much lower on cash than I would like to be, and I'm trying to decide if I should continue to wait and save more cash reserves, or put some IRA money to work in an SDIRA (please see questions below).

SELF-DIRECTED IRA
I've heard a lot about self-directed IRAs, but I can't say I'm too knowledgeable about them. I understand that instead of investing in the traditional stocks, bonds, mutual funds, ETFs, etc., they allow you to take control and can hold real estate.

I guess my initial question would be whether or not you have to have enough funds in the SDIRA to cover the entire purchase price or can you just use some cash in the SDIRA for the down payment?

Would it be more advantageous to do this with funds originally coming from a Traditional or Roth IRA, especially for someone under 59 1/2?

Finally, I would have to think there are many tax disadvantages that would deter someone from using an SDIRA and make them more inclined to use after-tax cash. Right?