Bottomline, you can get solid returns w/experts, diversify better, while still not having to give up your desire to be a bit more active.  

You could sell the land raw to an end user, ground lease the land, entitle the land and sell for more money than raw land, or a build to suit for STNL.Spec development is the riskiest because a lender generally requires so much pre-leasing before you have funds for construction.You could also partner with a more experienced developer for a JV agreement and learn how they do it.

You can come in with extra funds from any source.  

(and have funds for a 3rd when I can find one I like) I've had decent tenants so far and my HOA has been amazing.  

Bad part is I lose my $33k line of credit which could be used in the future and I wouldn't have immediate funds for rehab.  

Big shout out to @Jason Hirko w/ Corridor Funding in Austin for the first loan and helping me find the property!

On a side note, we have been pre-approved over the amount of price ranges we have been targeting.We came across a beautiful 4 unit/8bdrm townhouse (built in 2016) in a desirable part of town.

I would personally then use the 40-50k to increase my buying power using Hard Money/ Angel Funds/Etc. 

There is a lot of good information here on BP in the forums.The basic concept is that you can diversify your tax-sheltered retirement savings from stocks, funds, CD's and other conventional financial products and include investment options such as real estate, notes. etc.  

We were thinking of selling our current property and maybe getting 40-50k from that and adding it to our saved funds as this property is probably not the best to have in the long run.