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.

Charlotte and Raleigh are the hottest job growth markets but a saw a report that NC flipping profitability isn't that great  

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.  

However, I have had the presence of mind to NOT force my numbers and, although I have been tempted to seek out other areas of San Diego, I have not as my present market is one of the hottest, and I know my persistence will pay off eventually.  

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?

What sub-markets in Atlanta would you say is the hottest to focus on right now?

I looked at things like "hottest real estate markets" (past and present), cross referenced with job growth, population rates and where "the cool" kids were moving.

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.