If I can invest that money and make a great return, then I'm paying the taxes with future dollars AND I made a boatload of cash off the government's money.In an IRA or 401(k), you get the tax deferral on the amount you contribute, but the government is going to tax every penny of growth on that contribution.

I'm just starting to research self directed IRA's. 

I also have a Traditional IRA.

While there we'd also like to look at putting an old $73k IRA into action investing in the city via sf and mf rentals.  

Is there any violation of the rules if as a lender I fund a loan part from my Roth and part from my Traditional IRA?

My response was asking if a traditional IRA can loan.  

Why choose one self-directed IRA company over another?

@Bob EdwardsI agree with @Brian Eastman moving the simple to a Self-Directed IRA would allow you to make use of the funds.

Is there anyone you know with a significant IRA/401k balance?

Consider your asset allocation categories and all of your retirement investing options: IRA, 401k - and don't forget 529 plans for the kiddies!