A recent housing study showed a student bed surplus that will extend to 2018.  

Be careful to not get priced out, San Diego is a hidden gem with a massive surplus of mid-century modern bungalows that are dying to be flipped.

If you are not financially disciplined enough to realise that then you are not ready yet to invest your surplus savings.

As for paying off personal loans and your car its probably wise to consider it and also to at least save up some surplus cash because even if you do get the property with no money down there could still be costs and you need to be ready for them. 

@Suzette LoweryWe just completed our first rehab, so I'm a rookie at this, but I'm happy to compare notes if it's helpful.For flooring, we went to a builders surplus warehouse type store.

Takes a beating, and you can find surplus, easy to install boxes everywhere for cheap.  

Repairs 763.00 Windows 800.00 Carpet 1,200.00 Garage 110.00 Landscape 650.00 Trees 636.00 Lowe's 2,396.00 Home Depot 2,140.00 Home Emp 304.00 Surplus WH 783.00 Ikea 405.00 Best Buy 732.00 Home Depot 2,448.00 Walmart 181.00 Overstock 160.00 Target 110.00 Subtotal 29,219.00 Holding Costs Duke 9/25-5/9 1,208.00 Water Works 380.00 Cable Wifi 45.00 Simplisafe 175.00 Insurance 679.00 Taxes (prorated) 1,244.00 Subtotal 3,731.00 Misc Alarm system (included in sale) 290.00 Water meter 233.00 Cinci Alarm fee 50.00 Subtotal 573.00 Total Renovation/Holding costs 33,523.00 Total Investment 66,523.00 Net Sale proceeds after commissions, taxes, fees 98,485.32 Paid to seller (separate as concession to new owner for new windows and a few other items) -3,000.00 Paid Home Warr - AHS -435.00 Actual Proceeds 95,050.00 (Minus Investment) -66,523.00 Total Profit 28,527.00

The surplus funds may, or may not, go to the demo lien. 

If there is a surplus the tenant is given the choice to     a) apply the surplus balance toward the next month's rent;   b) leave the balance in the utilities budget in anticipation of larger utilities bills (i.e. winter is approaching); or   c) refund the balance to the tenant (this option is only available at the end of lease, if there are no other outstanding debts owed to the landlord.If there is a shortfall in the Utilities budget account - happens very infrequently as we have a pretty good handle on the operating costs of our properties and set the monthly contribution accordingly - the tenants are invoiced and the amount is due at the first of the next month.

My father decided to start vermi-composting a couple of years ago and in the spring sold his surplus composting agents (worms) to bass fishermen for a healthy amount.