This idea of diversification is a very tricky philosophy to me. 

Certainly not impossible, but the multifamily market (especially for larger properties) is pretty active and below-market purchases, while possible, don't happen as often as they might in the smaller property space.Pro tip:  If you still like the idea of purchase cap rate, use stabilized yield on cost instead. 

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.

My husband rolled with those ideas and made them happen.What was the outcome?

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?

Take a look at https://www.biggerpockets.com/forums/432/topics/533888-syndi... 

I had a couple other ideas to salvage the deal first.

Should give you an idea as to whether it's worth it or not.  

Every investor has their own path, and hearing different perspectives will only enrich your journey.Challenges in Real Estate Investing:Finding deals: In competitive markets, it can be tough to find good deals that make sense financially.Capital and financing: Finding funding, especially as a new investor, can sometimes be challenging.Dealing with tenants: Managing rental properties and dealing with tenants can be tricky, especially with issues like late rent or property damage.Market risk: Real estate markets fluctuate, and external factors (like economic shifts or local development projects) can impact property values.I’d be happy to continue the conversation if you want to dive deeper into any of these topics!

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.