That's always been a good little neighborhood. Folks tend to grow up there then raise their kids there.
That being said, it's not really Los Gatos. I'd call it Cambrian.
I don't think it's realistic to get in and out of a house in two years. It's not like the stock market where you can sell in 5 minutes for $7.95.
As a rule of thumb, you need 10% appreciation to cover your costs. Which means you need 5% annual appreciation x 2 years.
I don't think that's realistic.
My best advice is to look for a property that has all the inherent attributes that contribute to value (excellent location, good schools, functional floorplan, good lot, popular upgrades, etc.). As the market returns, those types of homes are likely to appreciate faster than a home that has various shortcomings or drawbacks.
A home that's overbuilt for the neighborhood generally will appreciate more slowly than those that conform to the rest of the homes in the area. Similarly, a home that's in need of updating won't appreciate as fast as others in the same neighborhood that already are a "10."
Hope that helps.
- Rod Herman