However, these areas are trending upwards.

I've focused on trending topics and have read 1 or 2 of the bigger ones a day.  

Might need to hold off until the market changes, or get my foot in with new construction, which is the current REI trend here. 

Is it OK to trend into a profitable state with a property over time?

Now I know I don't cash flow positive off the bat, but I am trying to determine if this would be a good long-term investment with the way rents are trending in the Bay Area.

And by overpriced I of course am referring to asking price vs. rental income.I fear that its not just a premium in the 'hot' neighbhorhoods, but a creeping higher and higher trend of values across the board.  

Overall trend for area around this part of center township.Purpose: Long term buy and hold for stable cash flow so please pour in your expert opinions Indy investors.

I am curious in your experience as well as @Greg H. and @Ricky Gibson 's experience if you have seen HUD drop prices at the 30 day DOM mark, or if you have discovered other price adjustment trends that have served you well in your bidding attempts?

I recommend you talk with a Realtor, and see what the prices are like in that area run the comps look at the trends on top of many other due diligence research items. 

It also shows how to structure a deal for a tenant long term securing a trend in rental increases appropriate for the current markets.