Let's say I have $80k in a 401(k). I know there are benefits and drawbacks to buying property with a self-directed IRA.
If I buy a condo in a vacation/rental area with the IRA for $80k, the IRA then leases the condo to an LLC for $1/year. The LLC is responsible for paying the taxes, insurance, condo dues, cleaning, maintenance, etc. The LLC collects the operating income to pay for these things. Thus the LLC gets the tax deductions of the expenses offset by income. The owner of the LLC gets the profit. Does this work?