Or should I sit on this money and wait for the market to crash?

No one has a crystal ball but there are certainly strong indicators for a crash.

We've also been told not to look S of Gate 1 since we'll be initially living in the property.Looking to do a min 4+2 SFH ranch buy & hold that we (family w/ 1 toddler and 1 elder big dog) need to owner occupy and rent 2 rooms out for about a year before turning it into a STR/military crash pad or LTR.

Also, the city was known to be almost completely recession proof through the last major crash. 

Some of the economic pundits are rattling about the 'coming crash' will make 2007-08 look like an old joke and you're old enough to know many homeowners and investors were flipped upside down during that plummet.  

Scenario - Sellers bought house in highly desirable neighborhood in Phoenix, AZ at peak of last crash.

And are you saying I should wait for the housing market to crash?

And there were two crashes, 1986 and 2008 where some loss their shirts.In flipping, you got to know the right price to get in, and the right price to unload.

No CRASH in sight with that policy.   

However, as years go by, the market crashes and the economy sinks down, and my tenant buyer cannot afford to carry on with his payments and decides to back out.