Yea, I try this as much as possible. I am in the process of converting my closet (a 6' x 6' square) into a relatively closed-off space using acoustic tile, and a lot of materials left laying around (hyper-insulating the drop-ceiling, for example), so I can get a decent space for recording where some outside noise is cutoff, and the reflections are controlled a little better (vs. completely deadened or not dampened at all).
Over the weekend the Rode K2 came in, and even with my dirt-cheap preamps, the sound improved drastically. However, the Nady PRA-8 just doesn't have the drive the K2 needs to get a good distance-level (i.e. enough gain to play very light acoustic from even just, say, 6 inches away). You can hear it, but it isn't anywhere near close to 0dB going to tape... then the fader needs to be pushed up, and that makes it noisy as Hell. I am going to be picking up a better preamp in the next couple days, so we'll see how it goes. Til then, more placement playing!