HUD home inspection

[Kevin N.]

Hi all,
I'm in the due diligence process of a HUD house. The HUD's Property Condition Report shows the plumbing system is "No leaks detected upon introduction of pressure". However the water pipe between the main shutoff valve (in the garage) and the house's plumbing system was cut off can capped. It looks like they knew of some problem and did it to prevent damage. When the water was turned on, there's leaking on the first floor's ceiling. The fact that the main water pipe was cut off makes me thing the leak could be from the supply pipe to the gas heating unit on the attic. The house was built in 2005. I don't know whether or not i should go ahead with a deal since I don't know how bad is the plumbing system. I dealt with a couple of HUD houses already and this is the first time I saw water pipe cut off like that. Advises are much appreciated.
Kevin