Direct Real Estate in an IRA

Client who is very interested in purchasing direct real estate using their Roth Ira. They would go through a custodian that allows such a purchase. My first instinct was that it sounds like a bad idea. I'll list my brief thoughts here but I'm mostly wondering what others have experienced with this. 1. Liquidity problems- you can't sell part of a house, and sale of homes is slow. 2. Risk- you are putting a lot into one "position" 3. Property management- the Ira owner and family cannot be directly involved in management and cannot use the property at all or they could lose the tax advantage of the account. All expenses and income must flow through the Ira.

What else have others found? Has this worked well for anyone or their client?