You can do that with any type of home. HUD homes are typically only available for bid by home owners for a certain period of time. After that though investors can bid and buy the homes as well if no O/O have made any bids on the home.
You should find a reputable Realtor in your area and discuss your plans. They can look for homes for you that meet your criteria. HUD homes are not necessarily a good value. They are often times overpriced and HUD has to reduce the asking price. Sometimes they are priced correctly and they sell quickly. Just like any other property in the MLS. Price it right and it will sell. You always need to do your homework especially when buying a HUD home as they are not always great deals. Make sure you know the market or are working with somebody who does.
Good luck to you.
REALTOR | Mortgage Broker | Consultant
Buy - Sell - Lease - Invest
Keller Williams Realty | 360 Lending Group
Have a blessed day.