I have been able to find deals in the current market using the BP calculator that fit my buy box, but when I see that homes in that area are estimated to be ~30% overpriced and am watching in real time prices drop it leaves me unsure what to do.

., so only you can decide what fits your budget and your lifestyle best.  

The seller was motivated to sell, allowing us to negotiate terms that fit our strategy.

Once we have agreement in principle we then have our attorney draw up something formally that the seller can share with his/her attorney if they see fit.  

Find the strategy that fits your financial goals.

Two syndications with 12% return, great management track records, everything the same except the deal itself.Everyone above has given you a good breadth of concepts, so these fit your concept of passive?  

Quote from @Becca F.: It's now 2 weeks later since the last comment.

For fippers;  due to high liability falling onto you personally if plumbing pipe pops a fitting after you close/sold to a buyer and you used a handyman to do the plumbing without the plumbing permit AND inspection;  bad things are going to happen.   

I have only been looking at residential, single family, but today I found two commercial spaces (office) that would be a great fit for my growing day job business as a lactation consultant (currently operate just by doing home visits, but want a dedicated office space to see clients one day).

Only you know which locations will fit with the lifestyle part of your objectives so you'd select the places that work for you first.2.