You’d need a clear exit plan and enforceable lease terms to protect your investment.Think about the following:Tenant Risk – Can they truly recover financially, or will you face another eviction situation?

Ordinarily those tenant vacated damages would be too remote, but it sounds like they were contemplated by both parties at the time of contract.Were I in this situation I would be looking to state law to determine if the EMD is truly the extent of my potential liability as a buyer. 

You have kids - do a 529 plan and max it out You will retire one day - max out your 401k yearly, IRA, Roth IRA (or backdoor to Roth IRA)You will have health expenses one day - max out your HSA From here I'd invest in Real Estate.

Does your company only operate in Memphis or plan to expand to other markets?

Make sure your exit plan aligns with it, whether that’s refinancing or selling.

If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.

He thought you were looking to be a borrower with your plans investments, not be a lender with your RRSP.I would seek out providers of self-directed RRSP plans in Canada. 

So this requires some upfront planning. 

I own a home which I’m currently living in and planning on making a long-term rental property as well once I move out.

No doubt; both of my neighbors at my vacation house got "free" roofs from guys who roam around after any storm and document that whatever storm damaged their roof - despite the fact they both had 15+ year old 3 tab asphalt shingles in the central Florida sun.