San Jose definitely has a strong rental market. It's identified as one of the few metropolitan areas in the entire US that will have >5% rental price growth in the next year.
You are asking all the right questions here. However instead of giving you pieces of information here, it will be more effective if we sit down together for a more in-depth discussion. We have worked with many first time investors. We give a crash course on real estate investment, lay out the entire process from financing to purchase to management, identify properties within the budget, do the analysis, complete the purchase and of course find the tenants and manage the properties.
You can email me and I can answer your questions listed here. Or if you need further assistance, I can certainly be of help.