HUD Home/Plumbing doesn't hold pressure

[Ben Stout]

Hello everyone,

I hope I'm posting this in the right forum. I have found a HUD home I'd like to purchase as a rental. It's a great price, great neighborhood, solid numbers (50/2) etc. Here's the problem:

The HUD disclosure states that the plumbing does not hold pressure. I have seen this on numerous HUD homes. They often don't do what I'd call "the best" inspections, if you know what I mean, but this is especially disconcerting because the home sits on a slab foundation. If I inspect and then back out, HUD wants $500. Having a diagnostic run will probably set me back an additional $300-400 to find out what the problem is (I'm guessing.) I could essentially be flushing $1000 if it turns bad.

Could be a toilet seal, could be a pipe busted under the slab. For this house they would have used PVC and it was built in '89 (Ranch style.) In my offer I've budgeted $2000 for a repair. It could be way high or way low. What would you do in this situation as an investor? Go for it, or look for the next one?

Thanks!
Ben