Development potential to add more units.

Assets go a long way, and the deal itself has to make sense (i.e. buying a strip mall, what will the rents be?

Once you get past the zoning hurdle, its important to engage an architect who can lay out units.  

However, after meeting with a friend who has real estate experience he mentioned that he predicts in about 12-18 months there will be a downturn of the market and an influx of foreclosures due to the pandemic forebearance.I now feel like our momentum and excitement has come to a screeching halt and I am unsure of whether or not to invest in this market.I understand long term the market works itself out, however, if I bought this multifamily unit on my current income, I cannot afford for the rental market to depreciate as well which is my fear.The mortgage would be about 4K.

I usually see duplexes split vertically (Left and right) but this property is splits its units horizantally (1st floor, 2nd floor).

I specialize in small multifamily(2-4 units) deals both as an investor and agent. 

I am pretty good on appraisal and can tell you if purchase will make sense or not if you buy as an investment.

We are currently renting a space in a strip mall and the landlord is willing to sell the unit to us.

That makes sense @Vicente Hernandez - I think the key will likely be what type of lender they are. 

And building a 2-4 unit is possible in one of those scenarios as long as your lender can do it.