Check out Zostel and Trippr. They are good hostels. You could also look for homestay options on AirBnB Alternatively, if camping interests you, there are ample of beach camping options in Gokarna. http://www.gokarnaadventure.com/
Hi Parth, There is a Zostel at Gokarna which you might consider for your stay. It's pretty affordable. Here is the link: https://www.zostel.com/zostel/gokarna/