Found a property............BUT

[Jennifer MacDonald]

Found a HUD property I am really interested in-3 bedroom, 2 bath 1500 sq feet, nice area, etc. The HUD inspection states the plumbing failed their test. No further info available on this. No obvious signs of water damage in kitchen and baths but there is a strange rusted area around the door frame as you transition from the living area to the hallway for the bedrooms.

I would be buying as an investor so home inspection contingency is not possible in the contract.  I am being told I can have power turned on for the day for a full inspection(done before offer is submitted) but they won't turn on water when there has been a basic failed inspection in case there is a huge leak/water intrusion problem. 

So there are 2 questions here-any thoughts on what could have made the plumbing inspection fail? Secondly, is this biting off too much to get started into real estate investing?  I am a private investor that does not have other monies backing me.

Any feedback is greatly appreciated,
Jennifer