You also need to take into account that new cars will eventually be needed.

Since you mentioned you are 36 I would focus on producing as much wealth as I can. I think being young is about that, taking advantage of our energy in order to produce the necessary wealth.

Passive income is great, so if you could live with only that, perfect. But perhaps the best would be to take a more aggressive approach, only because you and your family are young. So there is still a lot of time and a lot to expenses to cover in the future. Producing as much as you can is the best. Whether it is taking another full time job, or doing other things, I don't know, that's up to you, but I would focus on increasing me and my family's wealth.