Funding a Seattle residence with a self-directed IRA

[Shawn Q.]

So I'm considering a possible move to Seattle, which is a crazy market. Coming from the Midwest with a relatively low-paying job I wouldn't have enough cash to invest using traditional methods. I'm wondering if someone with experience in self-directed IRA investing could comment on the possible path below (I acknowledge no one responding is providing legal advice, etc. and I should check with a lawyer - I'm just looking for whether going down this path might be possible before calling my lawyer and getting a bill).

I have roughly $100K in a rollover 401k from a previous employer and I was thinking I could put that in a self-directed IRA to put a sizeable down payment on something that I could personally live in. I would have a property manager as I know I'm not allowed to actively manage real estate in a self-directed IRA. My question is whether that would still clear the bar of those rules. My IRA would be buying, the property manager would be managing, and I'd be paying normal market rent. Though it would be essentially paying myself, I'm hoping that might be hands-off enough to qualify.

I'm thinking this would be beneficial as I wouldn't have to worry about the tenant not paying rent, I would be building equity over time in a market it would otherwise be very difficult for me to enter, and I'd be able to minimize fees by finding the lowest cost property management possible (as I wouldn't need to worry about tenant screening, etc). 

What do you think?