The difference is at this point there could be more penalties and fees, but usually they are minor in compared with the taxes due.   

Given comparable rent of units this size in my neighborhood, we are getting a great deal.

Having said that, life is not all about the money, and as others have said, spending some time and effort to help another person experiencing a tragedy can be as rewarding to you as it is to them.

To add to my above recommendation, make sure to pay close attention to the sold date as well and try to stay within 3 months of the date the comparable closed. 

If anyone wants to meet up and compare notes or could use a quick scan of something while I'm out there, just let me know.

You won't get your full return back immediately, compare it with COCR.

@Costin IorgulescuWhile there is technical merit to the differentiation between the tax performance of passive real estate held personally and within an IRA, the argument misses the key point.When investing your IRA in any asset, you are not comparing that investment to how it would perform in the after-tax world. 

The problem is, there is barely anything to compare it to.

@David Weintraub I can attest to the challenge it is finding a distressed property at a price that compares to prices back in 2014 when I bought my first distressed property.

With the highs/lows and risks/rewards that comes with that.