Do you hold any financial advisor certifications?  

Anyone answering is not responding as a Tax accountant, Insurance expert or as a Financial advisor.  

Distressed properties are real estate assets that are usually sold at a discount due to financial or physical distress.

By the time I retire, I want to have enough rental properties to have financial independence to enjoy my hobbies and enjoy spending time with my family and watch my children grow up.

Currently their are many SEC and FTC complaints against them and their will soon be a class action lawsuit. 

Financial freedom.

As always, conduct thorough due diligence and make investment decisions that align with your personal financial goals.

This is a great first step into your financial future.

Avoid deals in poor locations with high vacancy rates, overpriced properties, significant deferred maintenance, and unclear financials.

So basically in my mind this would not be a great financial move as we be accruing about 200k more in debt if we were to sell one house and take the cash from there and use it as a down payment.