Life created in that way is morally and genetically wrong.

At a moral standpoint, having a child with someone that you are related to will cause the child to get many unfortunate traits that will just cause the child to suffer. Even if life is created, it would not be right as it would live in constant pain as well as the child would not live for very long.

Genetically speaking, having a child through incest is completely against the point of procreating. Sexual reproduction is done so that recessive diseases would be taken out of the lineage and the DNA to become better. It is even makes people want to not have any sort of sexual relationship with family members.

In both cases it would be wrong, but let me know why you think it isn't.