Call me stupid then.I own 4 properties in my IRA that I bought with IRA cash.

States will have a carve out for a few like 2 or 3 from your IRA and that your not holding yourself out as a lender which it appears you are..

If you have switched jobs and your retirement is in an IRA vs. 401k, maybe consider rolling it into a self-directed account to invest in other people's deals with that money (aka private money lender, syndications, etc.)

That person maybe used up IRA-$, maybe got brother, in-laws, some college friends to pool $.

Not having a mortgage is very powerful.I also like buying properties in my ROTH IRA and not ever owing any further tax or capital gains. 

In total I have about 57000 in a savings account, $11,000 in cash and another 8500 in my Roth IRA .

If it is owned through a trust or IRA....yup, we can insure that too. 

I am by no means proposing this, but just as Medicare premiums, Required Minimum Distributions (RMDs) from retirement accounts, and contribution limits for IRA/401k accounts are adjusted for inflation, would it be fair to suggest that rent increases could follow a similar model to ensure that both landlords and tenants are treated equitably?

AND it works other wise they would not keep doing it.so A true private lender is someone you personally know or have met who has money in their IRA or other cash but lending is not their business they just make a few loans a year to those close to them. 

Instead of cashing out your IRA with the consequences of penalties and taxes, keep your money in your IRA and use it to invest.