There is probably easier fruit to pick.

Real estate notes allows us the time to keep doing what we do best and still be able to grow our retirement basket with an above average return.2.

Buying investment property with cash can make the process easier, but is it better to "put all your eggs in one basket" or spread your risk and leverage your capital with a hard money.

As a new investor I do not see any low hanging fruit and I certainly have not found any notes discounted that much, unless they appear as lost causes. 

I'm a kid in a candy store waiting to fill up my basket!

They go after the low hanging fruit from hedge funds and listing websites like FCI, Watermark, Note Depot, etc.  

I just can't bring myself to put all of my eggs in one basket, though.

I was fortunate enough to get started when the low hanging fruit(mls REO's) was plentiful. 

In year 3 I was still struggling but I bought 2 more properties that needed work and by the end of that year we finally started seeing the fruits of our labor.As long as your committed to this Real Estate game your wife will see that and everything will work out...if your patient. 

There are also some excellent opportunities within the areas surrounding Central Sacramento that can be much more fruitful in yielding a stronger return while limiting the upfront investment.