We also do a walk through, set expectations for maintenance, filters, lawn, garbage and go over the function of GFCI's, shut off locations (water, power, gas).

In fact two week ago I tried reasoning with a brainwashed Pace Morby follower in these forums who stated he would  happily complete a seller finance deal for more than FMV value, effectively putting him under water if he could acquire the property without using any of his money and the property cash flowed.

The water is getting in from somewhere, and if left unaddressed, it could lead to bigger issues down the road.

I know one option is to wade into the waters of private funding.

The house has been through two hurricanes now with no damage or flooding, so it is pretty low risk from that standpoint.

While no properties actually flooded, the entire area was a disaster - roads destroyed, rescues, loss of power, and loss of safe drinking water than lasted for two weeks.  

If you have rain water run off to their yard they will get you finned.

Could be the water, don't know. 

The HUD inspection the next day finds a water stain on the ceiling and fails the property.  

He wanted to know if it was due to a leak in the wall with the a water pipe, which it was not.