New member with a question about a HUD offer

[Kate Kratochvil]

Hi, I am a real estate agent, currently running a real estate photography business outside of Atlanta, GA. I am in the "self-educating" part of my quest to become a RE Investor. 

My first investment property is going to be my personal home for a couple of years. I have found a HUD home, and just made an offer today. My offer is more than 20% less than HUD has it listed for, so I'm not expecting to get accepted right off the bat.

I pulled up the Property Condition Report, and a plumbing problem is noted. It says "The plumbing was tested using an air compressor. The system did not hold 35 psi for at least 15 minutes. The location of the leak(s) could not be found. DO NOT ACTIVATE THE WATER. The property was fully winterized. The main water shut off was zip-tied."

So...will an inspector be able to diagnose the problem? Even without water? Should I call the water dept? Any advice would be SO greatly appreciated!