So the advice on what to do with $20K doesn't quite apply. 

There are many unqualified LOs, that are almost about to quit because their pipelines are so dry, that they will tell you anything to pull credit, order an appraisal, and switch terms on you at the very last minute. 

Quote from @V.G Jason: Organize taxes and eat better.  

There's quite a bit of threads on the same topic weekly - you'll find plenty of markets shared.What will help you figure what market to invest in will be answering a few questions for yourself: are you willing to travel to that market, what is your buy box, are you seeking appreciation or cash flow more, do you have or reasonably can garner an edge in that market (ie - can you build a great team).

If they are selling for under $250k I might just eat it.

@Ryan Rubel There are certainly quite a few restrictions in those two areas, in Carlsbad you have to be within the coastal Zone...I have a multifamily in Carlsbad Village a block outside of the coastal zone so I'm unable to operate it as an STR unfortunately.

Facebook groups can be quite beneficial as well.

Thanks.I did see PassivePockets mentioned here but was not quite sure what it was about. 

In my market, I still come across quite a few applicants who have not used credit much (or even at all).

We also have pretty high property tax bills (around 2% of the purchase price/property value) that eat into a lot of the rental income.