I am cool with the idea of buying it off market and listing it with a realtor on the MLS at a premium.

It sounds intriguing and like it could be a another good source from homes since the MLS has been pretty dry lately/hard to make houses pencil out for flips.Is buying from auctions a good idea?

I have seen great properties coming out with a great rental rate, but you would know those move quickly so being partner with someone local in DFW is always a good idea.

I think investing out of state in a D area is a bad idea.

(And no, the "acquisition fee" or carried interest at the end of the investment are ******** answers to "most of my net worth is in the deal").When the investor, whether it's a 27 year old putting their first $50K or $100K into something, or a 45 year old worth $15M putting $9M into their business idea, goes all-in, that's when my ears perk up. 

The wholesaler had no idea.

I do not subscribe to the idea that you should expect negative cashflow UNLESS you want a specific property in a specific market that is more or less a second home situation. 

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.

Many of the horror stories I have heard and witnessed in real estate came from the notion that funding real estate with personal debt or credit cards is a good idea. 

The only time I'd say it's an okay idea is if either: The area you're investing in is expecting so much appreciation that you will easily profit off that (watch out for mortgage interest though...the appreciation needs to be higher than what you pay in that and expenses to make it profitable)You have some specific reason for wanting to do it- family ties, future home, major long-term hold, etc.Maybe I'm forgetting another one, but those two are all I have for now...