Own two paid for homes, selling one when I retire, how to invest?

[Craig Libby]

My wife and I own two paid for homes. Our primary residence in Texas and our vacation/retirement home in Utah. When I retire, we are trying to decide if we should sell our Texas home or rent it. I have used the Bigger Pockets calculator and we would get a decent return. If we sell it, we would have about $400k to use for other investment properties. We are not fans of debt. We like the idea of small multifamily properties for maintenance, insurance, etc reasons. We want or first deal to be solid, but just not sure what to do. I should point out that our goal is to build up a passive income stream in real estate beyond the return of our other stock market investments.