Hi, I've gotten myself into a big pickle by taking a distribution out of my IRA believing that if I transferred the money from my traditional IRA to my Self Directed that I could spend it on Real Estate penalty free, and (some) taxes free.

Free too.

If you have any other suggestions, feel free to shoot them my way.  

I am very passionate about real estate and see it as an avenue to create income outside of the corporate world.Feel free to contact me on the forum, email, LinkedIn etc.

Also, is it okay to feel free to use that money for personal stuffs like paying rent, utilities from the LLC acc?

A Foreclosure is not always 'yet' free and clear, but it should be. 

As others have mentioned it isn't entirely free. 

Here's a post I did on Subject To that may help Using Subject To, to Get "Free" Properties https://www.biggerpockets.com/forums/311/topics/1060320-using-subject-to-to-get-free-properties-a-quick-guideline 

Feel free to reach out , let me see what I can do.

another option is to pick a DC exurb like Hagerstown or Culpeper or Winchester or even the nicer areas of Baltimore (get some local experts to guide you if you go that direction) and start going there every weekend and really put some time in.hope this helps, feel free to ask any follow ups or PM me