Rising market indicators are properties increasing in value, days on the market are shortening, multiple offer situations, and/or a tightening supply of houses.

I also think Memphis has better overall infrastructure for out of state investors then other markets have but I think this is a secondary consideration

How much earnest should be good consideration for same price project?

Take two years of 3% growth into consideration, and you are at a 375k value on a 360k purchase.

I would even do 6 or 12 month rentals to give yourself room to reevaluated the market and increase the rent.I would then draw on the HELOC which your tenant will cover from your premium rent.I would use the HELOC as leverage as a down payment to a large multi-unit. 

I'll be contacting my attorney tomorrow about it to get smart on the structure and legal considerations.

I intend to increase the rent to market rate, but I would like to do that gradually.

I offer the small pricing tweaks and info for your consideration.I would increase your property tax estimate to 1.25%.  

WAAAAAAY more affordable.http://ktar.com/story/1908091/could-downtown-phoenix-be-the-next-major-hub-for-high-tech-companies/"Shannon Selby, the economic development program manager for the City of Phoenix, said the number of high-tech companies in the area has increased from 67 to 281 over the last five years, a growth of more than 300 percent."

Silicone valley obviously increased a lot already in last 5 years, and it should be one of the most expensive city in among the US.