Purchasing SFR using funds from IRA, owner financed

[Arun Chandra]

Hello,

I've been looking for creative methods to utilize the funds in my Self directed IRA to purchase Real Estate. I don't have enough to purchase the type of SFR I want, and I am wondering if I would be able to use the funds from my IRA as a down payment for a owner financed deal?

Scenario: Seller of SFR (not related to me in any way) owner finances me her house at X% interest rate for X amount of years.

I will have a property manager that handles all operations/financials and my self directed IRA will receive all income and pay all expenses. I don't touch any of the money, ever. (Well, maybe when I retire... Lol)

Any potential issues? Is this consider off normal practice or a standard transaction with SDIRA? 

Thanks in advance for your input!

-Arun Chandra