When purchasing homes in a Planned Unit Community (PUD) you will want to under stand their rules and regulations regarding renting out rooms.
As for appreciation, you've learned we are not mind readers. We would hope to see those types of appreciation, however, in my own opinion I'm very conservative and would lean more on the 3% when estimating any potential return on investment.
Our interest rates are very low right now so leveraging is greater than it has been in the past. However, several people are predicting that those rates could go as high as 6.5% this year. I'm not entirely convinced they'll jump that much, but with the government controlling the money and needing to replace those funds nothing is out of the question.
Yes, San Jose has built a lot of new high rises and there are plans in place for additional when the market changes, however it takes a long time from planning to building and eventually selling those units and they is why the 360 is now a rental vs a condo (for now).
if you are not working with an agent, it is advisable to do so, because you are going to be looking at several properties and that agent will be better able to serve you knowing all the details of each property.
All the best to you.