Would suggest demographic research followed by serious analysis on developing vs. rehabbing existing units. 

The criteria they used was: Price/income, LTV, St Dev, Flipping, employment diversity, exports, demographics.

If you are looking for invest out-of-state and perhaps want a property and a tenant demographic that would be less management intensive you might want to consider some other zips in Baltimore such as 21231 and some part of 21224. 

The long term demographic trends that are supporting multifamily as a property class are still very much in place.

We have started building more, but the wrong kind (at least here in Milwaukee it's only luxury homes) and the cost is going up quickly (materials, supply chain.. not only lumber, which has quadrupeld).Demand is comming from a shift in demographics: millennisals are now the largets group of home buyers, 82 million, 39 years old - they are not going back to rent.

Potter from the old movie "It's a Wonderful Life"--Just asking legitimate business questions about this demographic of the housing sector. )==

But “location” is a broad term, and evaluating the right place to invest your dollars means identifying the right markets both geographically and economically.Some cities simply provide better opportunities than others based on factors like the relative cost of housing to average incomes, availability of good jobs, and demographic trends.

It is extremely diverse so understanding the demographics of areas and flows is extremely important IMO. 

I wanted to ask what types of mortgages (ARMS vs conventional vs mature) and demographics should I target to in order to have a higher response rate? 

Go view rentals online in your target area that seems to be targeting your most likely demographic and see what their units look like.