That leaves us with a surplus of available properties.

If you are buying the material and either installing it yourself or having someone do it, shopping price can shave a few dollars off the project cost but if you find a flooring contractor that will work with you on multiple properties, they can often find it cheaper than you can.The surplus stores include your local Restore (we get a number of things from them and if there is more than one in your area, check them all out as the inventory is different), stores that carry closeouts (Ollies is one in our areas) and as has been mentioned, Facebook and Craiglist.Bottom line is determine what your end goal is for the price versus total installation and see where you come out ahead

What happened to the surplus funds?

It's a different strategy based on not just getting by but building a surplus and creating wealth.Hope this helps...

Is there anyone in Arizona or California with experience in surplus funds?

How do you generate a meaningful surplus in your day to day life, so that each month, you save up $1,000, $1,500, $2,000, or more, in cash, after tax, that can be deployed towards your first or next investment? 

Tile works in kitchens and bathrooms.Kitchen cabinets, we usually try to salvage cabinets and countertops, but if we cant, then we usually try to look at surplus stores and especially if you have a habitat for humanity restore, or consignment shop, we try to get solid wood cabinets from there for as cheap as possible.Builder grade everything usually, depending on the class of your rental.

However, I would use any surplus to buy more properties.

Reinsure Pro is an Excess and Surplus lines non-admitted carrier.  

Selling surplus is fine, otherwise it's a disincentive to do it.