Own the house in the IRA, or hold paper in it instead

I've spent so long weighing options that I'm now weighing the wrapper instead of the deal, which is its own problem.

Two versions I can actually execute. One, the IRA buys a modest rental with cash and holds it for twenty years. Rent is exempt from UBIT, no loan means no debt-financed income issue, and I get the appreciation. The cost is that the account owns a physical thing with a roof, tenants, and a bookkeeping requirement where every dollar in and out has to pass through the custodian, and I can't touch the property myself even to swap a faucet.

Two, the IRA holds a private note secured by real estate instead. Interest is also exempt from UBIT. There's no roof, no insurance, no vacancy, no annual expense drain on the account cash. The paperwork is one loan file rather than a property's worth of invoices. The trade is that I cap my upside at the rate, I take borrower and collateral risk, and if it goes bad the IRA has to fund a foreclosure through the custodian, which sounds slow.

The passive version of this room seems to lean toward owning the property because that's where the long compounding lives. I keep drifting toward paper because the compliance surface is smaller and fewer things can accidentally break the account.