Once our kid was born I started thinking of was to invest and save and be able to pass onto him one day and real estate came back into mind.

My logic behind that is i would be getting more income with more tenants(still exploring this thought, i do see some flaws as having an overcrowded property, tenants expecting the market value of the rent being split between all persons living in the property, is this legal?!?! 

between kids and other deductions we had not tax impact and retirement withdraws will be tax free.

Also considering I still have my own business to still manage along with young kids at home I decided to walk away from the deal.

Some teach...I think "retire" is a term that needs explored.

@James Paisley if you decide to explore the hard money option, I know a private lender in this area I can refer you to if need be. 

I explained my wife, that we need to purchase a property (we already have our own SFH) and guarantee the future for our kids.

Be sure to explore the site to get familiar.

The properties are now worth 850k and 1.05m a little over a year after I sold them...I purchased the single family home last year a after looking at school districts and realizing that with 1 kid and one on the way I needed to shift.

That could be the best move, take your loss and buy a place on Maui ;-) just kidding....kind of.You could increase the revenue in hopes that it would help you sell the property for more than you paid for it...at least enough to break-even when you figure the costs to sell.Perhaps you could trade the property.