I will explore this idea further. 

FYI I plan on leaving the basement open and using it as a rec room / kids play area. 

Lots of entrepreneurial investor friends here send their kids to Acton academy and don't stop raving about it.

However, for me the main difference is that I’ve always played games for my own personal benefit and satisfaction (except perhaps when playing with my kids) whereas my investing is primarily for the benefit of others, ie primarily to provide for my family.

Did you just think they were unaware kids and would never follow through?

Also- have you looked into short term renting or rent by the room- basically explore all options to increase your cash flow if you held it. 

If there are kids, are they running around like crazy, or can you tell the mom has control?   

His kids damaged brand new carpet.

We may move out of Colorado to be closer to support for our kids so we would not be looking for a new home here in the Denver market.Question is do I sell and use ROE to purchase a home for us to live in, in a less expensive market, and use the rest to invest in markets that have potential to cash flow (that is our RE strategy)? 

This then becomes a compounding effect as if the next generation is smaller, that means there will be even less folks to have kids and it becomes nearly impossible to reverse the trend.