Terrifying in Dream Journal

In one of my dreams, someone broke into our house. (more about the house in a minute) and I heard them and woke up Will and ran into the girls’ room. The girls were little, Zoe was around 7 or 8 and Jane was only about one. They were crying and the “bad guy” had been in there. At first, I thought he had done something to both of them but it turned out, he had only hurt Jane. He had molested or raped her. I was afraid to look at her body because I didn’t know if I could handle it if she had been raped. Then later, Zoe told me that he had “gone upside down on her.” I then went through the house and found the bad guy hiding in a closet that had a glass door and lots of windows. It was packed with stuff but I found him hiding behind some giant throw pillows. I told Will to shoot him but he didn’t. He ran to the yard and I kept yelling at Will to shoot him in the arm. Then, it skips to finding out that he was actually a woman or rather transgender. He had breasts like a woman but still had his male parts as well.I had to take him to the police but for some reason, I had to do it on foot. We were walking through a ghetto in a city at night. I talked to him/her a good bit. S/he was very snarky. That was the end of that dream.
I dream of houses often which I understand is a reflection of how you feel about yourself or your life. The house was old and dingy. There was a very large window in the front room and I didn’t have big enough curtains to cover it. And Will had gotten rid of our furniture when we moved (we had just moved in) and had instead brought in this hideous living room set. Old mahogany Spanish style sofa and chairs. And I was really upset. Interesting fact, the car we gave Zoe is maroon and I don’t like it because it’s a Ford.
Another interesting fact, yesterday in therapy, I was thinking about all of the things I have done to the children, mainly my oldest and Zoe that I regret.
I think that’s why the bad guy was also a woman.
But I’ve never hurt Jane so I’m not sure why she was the only victim.