You can indeed in a self-directed IRA invest in a lot of alternative investments like real estate.

This would give you the potential to diversify that savings outside of the stock market and into alternative assets such as real estate.  

Alternatively is there a possibility of your sister simply keeping the house, using a HELOC to get her equity for her next place?

What would be an alternative solution in this scenario?

@Lucas Carl means some people may not have a choice in their travel plans.

It's definitely one career choice that has paid dividends in my REI lifespan.

Another alternative is to JV on the deal where you contribute the property for a given "value" into the deal. 

There are many people who have made a whole lot more money than me because of their risk tolerance, but I have always been the slow and steady wins.In uncertain economic times like this I am glad my wife and I (as a team) were able to make the economics choices we did because we are not negatively affected to the extent that many people are.I hope all new investors gain valuable insight and learn valuable lessons that will help them out in their path.The bottom line for me in life is that my family is healthy and that we are together. 

Alternatively, I would stop looking at houses and putting yourself through the anguish of finding things you want but can't buy yet. 

So we are looking for alternative options to secure the property.