Well, first think about if you actually NEED a dog. If your house gets messy, adding a another pet will make it a little worse. And a not fenced in back yard means you'll have to take your dog out by leash 4-6 times a day. And with two kids, and a dog means you would have three kids, not two anymore. Just think about it first. But I would recommend a Miniature Poodle. They are great companions, hypo-allergenic, don't shed and VERY smart. Good with kids too.