Need Advice: Thinking to buy new condo to renting out in Bay Area

[Vineet Bindal]

I am a new investor and have been lurking this forum for a while. I would appreciate if folks can give me their prospective and POV on below choice:

A bit about me: 

- New Investor.

- Currently owns my own home with only comfortable amount of mortgage left. 

- Trying to buy a property to rent out and for price appreciation over next 5-10 years. 

Pros about the property: 

-Its in my backyard, 5 minutes drive from my home. 

-New Home so no post transaction surprises. 

-proximity to public transportation

-Its in San jose area so its easy to rent

Cons about the property:

- New home so it will be a bit expensive

- Bay area property prices are high and rent doesn't meet the 1% rule. 

- Cashflow will be negative. 

[Jaysen Medhurst]

@Vineet Bindal, nope. If it's cash flow negative, move on. Hoping for appreciation isn't investing, it's speculating.

Sure, appreciation plays a part in any long-term REI strategy, but to start with a property that you know is going to lose money every month is a terrible, terrible idea.