New to REI....Does this sound like a good way to start slow with a low monetary investment?  

If it just slows you down and doesn't set you back on the worst case and there is lots of potential upside I would take a very hard look at the property and move forward if it met the goals that I had in my plan.  

yes, HUD is notoriusly slow, just like anything else with the government, and they do prefer owner/ occupant sales over investors. there are many other creative ways to find and buy real estate. i use HUD for one resource only...... to find other houses. vacant houses are like deer at night, where there is one, there is another. i look up a HUD house, go to see it and then take a tour of the neighborhood. i would almost guarantee you that there will be another vacant house in that same neighborhood. i have personally bought a couple of houses simply by going to look at a HUD house

When you get into the millions you can start landing better debt.Some other investors I know have closed many small deals for multifamily successfully through Arbor funding.I do not have personal experience with them but maybe something you could look intohttp://www.arbor.com/loan-products/small-loan/Another option if you have some cash is to find an older owner that has sucked out depreciation and wants to retire and get money in small chunks back for a loan over time.

I think I have a great product and I need help getting it out there. 

Postage from Australia to the US is really expensive and it's SLOW...

On the surface, sounds like it's potentially the right product for you.

That area is red hot, started before the recession, kind of slowed, and has now taken off more than ever.

I want you  start slow as i am to busy right now with my new buisness to foucus how I would like. 

They will slow you down to becoming the person you want to be.