Some retirement accounts aren't accessible until you quit your job or hit a certain age and they typically won't accept those kind of reserves.  

Are you wanting to borrow from someone or put RE into your own retirement account.

While I'm not going to post net worth related things on the public internets, suffice it to say that I'm on the path to retiring in 10 years or less (depending on stock returns) if I invest in solely index funds and never get another raise.

Can I set up a self directed IRA, invest in rental properties and pull out the cashflow every month and pay the 10% penalty until I'm retirement age?   

20 minutes, but I do a lot of my own work and I still have a day job until I retire.

Plus i don't want to just work most of my life and retire, id rather enjoy life to the fullest, especially at my age of 22.

I want to own 20 cash flowing properties, and plan to retire from my 9 to 5 job after my 10th property.  

That's nice income to retire on, especially if you're in your 40s or 50s. 

I'm mainly interesting in buy and hold investing strategies and am looking to retire by 40.

I am planning to retire from the construction field  soon and want to get into real estate investing.