Buy or not buy small multi-family at this time?

[Shiloh Lundahl]

I am under contract to buy a C-class 12-plex in Tucson, Arizona for 680k (roughly 57k a piece all 2 bed/1 bath). Rents are currently $500 at the moment but market rent is about $725. I pay water and garbage. Here is the P & L from January 2020 through July 2020.

Many of the insides of the units have been remodeled or look nice enough. Our plan would be to paint the outside and give it a facelift and increase rents to market rent which would be $725. By doing this, we calculate an increase in value, using a cap rate of 6%, to come in at 1.03 million allowing us to BRRRR the property within 3-6 months and creating cash flow of about 2k a month. I am planning on buying the property 80% hard money and will probably get private money for a second for 100k - 150k paying 12%. I could use my own money on this project for the second but I would rather keep it in the accounts as reserves.

Here is the question, with the concern of an economic downturn, would you buy this property or not?  I’m not too concerned about rents going down, but I am concerned about people not paying due to the non-eviction moratorium. And I wonder if we should wait until more properties come available at cheaper prices. Also, there is the concern that if it takes me longer to get ready for the refinance that the economy may take more of a downturn and that banks may not want to lend on it.

What would you do?