I'm trying to figure out which type of investment appeals most to me and my goals - it seems they all do and have different pros and cons that come with them when I sit down to analyze.Like many, my end goal is to escape my 9-5 and be able to live off of my real estate investments.

Selling has the advantage of faster access to capital and escaping landlord responsibilities, but it might result in potential profit loss and face market fluctuations.

You can have a lot of social security, rental income, interest, dividends, etcI am not to say your income will be higher when you retire or that tax rates will be much higher, I am just here to say the only difference is 10% and not 30%.To add on all of this - If you keep your assets in a retirement account, your distribution will be taxed at marginal tax rates(Currently tax rates are between 10% and 37% + state taxes)If you invest personally in your own name, you have the opportunity to escape tax on any appreciation if you have heirs that inherit the property.Even if you decide to sell the property, you are paying taxes at the preferred capital gains tax rate(Currently at 0%, 15% or 20% + State taxes + Potentially NIIT)That difference alone pays for the 10% penalty.

We escaped "in city" Seattle a few years back. we had properties all over the city.

I always teach my students to have an "Escape Plan for Your Money". 

Here are some considerations for investing in a duplex in the Dallas area and potential alternatives:Investing in a Duplex:If you rent out one property, you can possibly create positive cash flow by partially offsetting your living expenditures.If you're an investor with limited funds, duplexes could be a more accessible alternative because they may have lower entry expenses than bigger multifamily properties.Perform in-depth market research in the Dallas region to pinpoint communities that have high demand for rentals and good prospect for real estate growth.Take a look at owner-occupant-friendly financing choices including FHA loans, which frequently have less down payments.Make sure you have a well-defined escape plan.

They both assured me it was a great property (which it was) but it had no fire escapes to the third floor which my contractor assured me we could get built.

You can never escape liability for your own acts and omissions.

I am guessing there will need to be an outside fire escape? 

Hey BP community I recently had a fire inspector come out and say I needed to have my fire escape ladder inspected by a professional on my commercial building.