I started a self directed IRA about 15 years ago, this particular deal  won't work due to the math and other things.

To make the math easy let’s assume you buy a 10 unit building were each apartment rents for $1000 a month.

Unless the math is way off, with current interest rates, home prices would have to appreciate by about 5.5% or higher for the next 5-10 years to make it worthwhile to own a home here.

I'm not saying I would do this, and I haven't done the math yet, though I think I could get a normal policy with hurricane/wind as well as the prosper policy for less than it would cost to add wind/hurricane to the prosper policy.

I agree with @Isadore Nelson, there will be an initial sting due to to the IRA transaction but with quick math at 8% your 60k will generate about 4.8k in year one, in 4 months at 1.3k you've already eclipsed that, their will also be a larger tax for passive income and an initial penalty from the IRS, but it won't erode the 8 month difference let alone the yearly compounding effect.

Any one of us could give you our two cents on the math of it, but only you can decide if it makes sense based on what your specific goals are. personally, i paid points on my house because my goal was lowest possible monthly payment.

That's the math of it. 

Real Estate Investing is a math problem...period.

Rough math is 46% (~$14k) goes to the $170k property, 54% (-$16k) goes to the $200k property. 

Even through 2008-2009 market.  2.7% on a $300K investment....you do the math as 5 years goes by.