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? 

If you want to just flood a specific neighborhood, there are certain sources for that, while if you want to target a specific demographic there are others that are better.

The first thing that I usually do is take a look at the demographics:1970462,768−13.1%1980357,870−22.7%1990328,123−8.3%2000292,648−10.8%2010261,310−10.7%Est. 2016256,902−1.7%Right off of the bat you have to decide how comfortable you are with those decade-over-decade numbers.  

check out the book "Demographic cliff" by Harvey Dent, he explains clearly why cash is king in the next 5 yearsThe times in my life where I got into trouble were when I over invested and left myself with a small cash position - then life seems to happen.  

Hey anyone have advice for specific submarkets within Anderson Indiana.How about local real estate, economic market and demographic trends?

The following might be of interest if you're looking for other statistical/chart analysis:1) Interactive Demographics Map from the Census: Interactive Map (this map is a little finicky, but once you get used to it, you'll get valuable visual info)2) Federal Reserve Economic Data: FRED (provides charts dating back 10, 20, 30, 40 years so you can see how things have been trending)

Considering our budget and goals, which of these areas do you think offers the best balance of investment factors such as taxes, home prices, demographics, and economy?

I like Indianapolis and Kansas City due to good cash flow combined with strong economic and demographic fundamentals.

It's highly sensitive to demographics and a declining business in some areas of the country.

@Mayda Searfoss When I decide on an area that I want to invest (based on the numbers and demographics) I always call a few local property managers and I tell them that I plan on buying several properties and let them tell me about their services.