There are of course other benefits to a physical asset investment that does not come along with a note investment and there are also expenses that do not come along with a note investment that are realized in a physical asset investment.  

Is anyone aware of any investor groups in the area that physically meet up

I can't make any recommendations as far as Sheriff Sales (go to www.bcsd.us and click on "Civil Process") as I have never participated in one.However, through experience I've learned that when homes are going through the pre-foreclosure/foreclosure process, the owners continue living there, without paying the monthly mortgage, until they are physically thrown out. 

I can't find any faults physically (realtor did a walk through already) and will rely on our inspection for due diligence.

@Devang PatelI would suggest considering investing your retirement funds in physical real estate and/or trust deeds.

Our data sources may be incomplete or incorrect; also, we have not physically inspected a specific home.

From the website:With myFICO Property Reports, you get access to the same “insider” information that real-estate professionals see, including:• Physical characteristics, sales history and mortgage information• Comparable recent home sales in the same area• Neighborhood demographics, information on local schools, crime information and statistics, natural and environmental hazard reports … and more!

The question is how is your $20,000 secured against a physical asset?

Of course you would need to make sure whatever improvements you are considering are allowed and are financially and physically feasible before proceeding but here are just a few ideas:Hire a surveyor to stake the corners of the property.

You need to know the market in area - know the physical vacancy, common incentives, eviction rates, market rents, etc.