Those are two of the best cash flow markets in my opinion due to the fact that they are very affordable but also have strong economic and demographic trends.

Rent to purchase price, or rent to ARV or whatever metric that you may use.I still can't understand what kind of demographics or economic situations would make Memphis so much different/better than say, Birmingham, Hunstville, Nashville, Chattanooga, etc.

@Anantha LakshmiHi Anantha,I have invested in US property from Australia and I always stress the facts that the most important part of when buying out of state or nation is not so much the stats and demographics but more the team established on the ground.Spend time building trust and relationships with key people you are looking at doing business with.

I agree there is a limited pool of renters but I believe the age demographic shift taking place (and for the next 10-20 years) might allow this to be a great niche market.

Demographics can change quickly in some areas as well. 

I would look deep at the demographics as Sarah mentioned.

I would investigate the counties around you to find the county that has the most population growth - that would be county to invest in.Here's Florida stats:  http://www.edr.state.fl.us/content/presentations/population-demographics/DemographicTrends_11-6-13.pdf

You're going to be renting to a lower income demographic, but there are always people looking to rent in that neighborhood,  I know a lot of people have had good luck in the Valley as well, such as the Twilight and E 53rd area. the houses are relatively modern, and go for pretty fair prices.

Houston is a bit in between, you get some cash flow and some appreciation; and Texas economy and demographics are still strong.

Expect this trend to continue to support multifamily investments for the foreseeable future.OverallReal estate for 2017 will be heavily influenced by the economy, monetary policy, and demographic changes.