more importantly, the IRA cannot be a borrower, so your account needs to be big enough to buy the property outright and fund all repairs, etc..

I have read that this is not true. An IRA can borrow to purchase RE.

There are some added details concerning the debt level and how the income is handled.

Two other comments.

1. I would not suggest raw land or other undeveloped property. That end of the RE market is more difficult as there are fewer buyers and sellers, etc. Rental income and mainstream property provides more flexibility is my view.

2. I personally like investing in private notes (think mortgages or trust deeds when my IRA is the lender to someone else). None of the hassles of property management, etc with above average returns. 8% is a fine target but I certainly do better in most deals. If you are a knowledgeable RE investor you can really bump the returns higher.

John