negative cash flow in the bay area

[Steve C.]

I am trying to find rental property in the bay area, especially south San Jose area. 

I am planning to buy 2bd/2ba property priced at around 450-550K, 

so I am mainly looking at Blossom Valley area of south San Jose. 

https://www.redfin.com/neighborhood/65588/CA/San-J...

https://www.zillow.com/blossom-valley-san-jose-ca/

I analyzed one property I am interested in, which I think will have an estimate of -$1182.99 cash flow.

Purchase Price	550000
Down Payment	120000
Mortgage	430000
Mortgage Rate	5%
Mortgage	2309
Tax	550
HOA	408
Vacancy (5%)	125
Cap Ex	115.99
Insurance	50
Property Management
Repair (5%)	125
Total Cost	3682.99
Rent	2500
Cash Flow	-1182.99

As many of you know, the Bay area is very expensive and it's difficult to have positive cash flow. 

But I think appreciation plays big role here compared to other area. 

I think houses in the Bay area will continue to appreciate greatly as companies recruiting many people

and more people flooding in every year. 

If I can somehow managed to sustain negative cash flow, then is it worthwhile trying to survive with negative cash flow?

I know that negative cash flow is generally not recommended in principle, but trying to understand 

whether it is worthwhile to take a risk in the Bay area. 

Also, with similar price range, should I target better area (say near Cupertino) with 1 bedroom unit?

I also think 1 bedroom unit is generally not recommended, but trying to understand whether there can be exceptions with great location. 

For example, this 1 bed cost is listed at $479K. 

https://www.redfin.com/CA/San-Jose/4681-Albany-Cir-95129/unit-143/home/1695726

Any advice is greatly appreciated. Thank you very much in advance.