Adams St. is 1 block off El Camino Real so depending what side of the street you are on, you could back up to an industrial/retail area, which will definitely make it more difficult to sell and lower the price. The same can be said if you are right next to an apartment building and have people looking into your back yard. As with all properties, if you price it right, it will sell. The problem with a street like this is that the price is going to be lower than houses in a more traditional single family neighborhood and probably not appreciate quite as fast.
I would say this is not one of Redwood City's best neighborhood, but not it's worst either. It would be considered a low income area of the peninsula and you will get all that comes with that. You will have to visit it yourself to determine if it is right for you. If you would like some photo's of the house, let me know and I can forward them to you.
I assume you are looking at the one short sale property that is currently for sale on Adams St. Please note that short sales can be difficult. In many instances, the price you see has not been approved by the bank so it is not a guarantee. Some agents low ball the price, knowing it will not be approved, just to get buyers interested. I am not saying that is the case here, buy you should have your agent call the listing agent and get a status before you think about making an offer. Also, the most banks will take 30-60 days to approve the price on a short sale and during that time, other buyers can come in an outbid you. It can be very stressful.
You might want to consider having your agent drive you through areas on the peninsula that have homes in your price range. I have worked with a few couples this year that were relocating and we spent 3hrs driving around the peninsula looking at neighborhoods as opposed to properties. We found this very helpful as it will give you a good fell of the neighborhoods you can afford and help you narrow down your choices. In the long run, this will be a big time saver for you.
Good luck with your home search. Let me know if you need any further information.