Self directed IRA or hold on my name using retirement funds

[Ashley Dennis]

I am considering two options for purchasing a A+++ SFR cash, Option 1 to place in a self directed IRA and let the IRA own the property and Option 2 is to buy in cash upfront and pay the taxes owed.
I am 62 years old and have another five to seven years prior to retirement and so I am trying to set up my portfolio for income generation by that time. Also the plan is to use retirement funds from my 401K even after which, I should have enough left for retirement. Although, I realize that tax implications will be severe on using pre tax money and will reflect as income.
Thanks.