I also advocate using the 95% LTV versus the more restrictive 96.5% FHA LTV.

You or your lender funds the deal.If you’re unsure how to fill out a purchase and sale agreement then an agent could offer this service.

Some banks will do 80% LTV but only on a 20 year amortization schedule or 75% LTV on a 25 year AM. 

There are other ways to use OPM and not be as risky about it.What you should do is leverage this money at 80% LTV and put 20% of your own money into the deals.

Alternatively, your sibling might use a 1031 exchange to defer taxes by reinvesting in like-kind properties, though this doesn't directly fund a primary residence.Other ideas include leveraging a HELOC on the rental properties for the down payment, taking out a 401(k) loan, structuring an owner-financed agreement, or a lease-to-own arrangement.

There is a catch - the couple wants to 1031 the funds into their sons next larger project which is TBD.

If they did, the previous manager is obligated to transfer those funds.

If you are going to do a HELOC then you must understand the cost of using those funds.  

I was working with Kiavi on a DSCR cash out refi 75% LTV on a SF home in NC that is rented to a long-term tenant.We setup the application, credit came through and the appraisal came through for both value of property and the "fair market" rental value.

Each time I wire funds down to Belize the recipient has to go to the bank and sign why they are getting the funds.