Sublime, Caress Me Down (Correct me if I'm wrong)?

Okay, one of my favorite songs is Sublime's Caress Me Down. But I didn't start figuring out the Spanish verses until just recently. Now correct me if I'm wrong, but in the 4th verse (1st full Spanish verse), Brad's singing about living on the other side (U.S.- En el otro lada es donde vivi) having a baby with his daughter's (Con mejita ques se llama Mexie) sister, basically his daughter (Y su hermana, si me quiere). Then, I think, he sings about having a baby with her (Y ya horita, tenemos un bebe). Correct me if my Spanish is wrong or if I screwed up the translation.