There are so many good townhomes in that price range that I don't know where to begin. First, I would determine if school district is important. Then, age & condition of the home. Work with your realtor, and have a conversation regarding what you are looking for so he/she can make recommendations. My favorite areas are Cambrian & Almaden. But Blossom Valley has many great opportunities. And Downtown San Jose is becoming a dynamic area. It just depends on what you are looking for.
Don't forget to budget in the cost of the HOA expense as well.
All of these items can be factored in to create a custom MLS e-mail push to your inbox. That is one of the services I offer my buyer clients.
I have a beautiful listing on the border of Los Gatos & Cambrian that is priced at $510,000 for 2 bed/2 bath, 1212sf. Great location, great schools, beautiful home on the top level - no upstairs neighbor.
Good luck. Please let me know if you need any referrals to lenders or other services. And, of course, I love working with buyers.