I realize there are a number of restrictions to using your IRA to purchase properties to rehab, but the benefits seem to outweigh the restrictions. Currently my IRA is rehabbing a property at 2921 Abbey Ct, Winter Park, FL, 32792. There has been a double benefit in doing a rehab. Since my IRA owns 32% of Abbey, it must pay 32% of each contractors bill. This has forced me to contribute to my IRA (which is a very good thing) and once Abbey is sold, my IRA will receive 32% of the sales price... tax free until I take it out many years from now. So, using my IRA for rehabbing has actually been a very good thing.