If it had been a water line, and since water lines are always under pressure when the water is on at the shut off valve, then the leak would have been consistent whether or not the bathroom had been used or not.

We received the new tenants move-in checklist from his agent and it states that water leaks from the ceiling when the tub is ran in the upstairs bathroom.

To increase the insulation factor, add argon gas filling in cold climates, but ignore in warmer areas. 

The house is said to be worth about 370k and the house doesnt seem to have any problems with the water, AC, or heater.

If you're testing the waters, just buy adequate insurance to protect yourself until you have a proper legal structure.

I recently bought a strip center in City of Gray, GA which is basically vacant with only 1 tenant, but the water and sewer bill was around 600$ (the usage was well within the allowed 2000 gallons for the base charge).

Definitely need to understand that 10% of gross rents go to capital expenditures, 10% goes to maintenance, 10% needs to be included for future PM fees, 8.3% needs to be included for vacancy, and then pull all your numbers on the electric, gas, and water that you would be required to cover.  

For example: they may list a water leak as $1000 repair when it may be a $7 shut offInspections on HUD homes are costlier and it some cases not possible in some cases do to the inability to turn on utilities. 

Him and another partner closed the deal, put up an additional $100,000 to renovate the homes, leased all 29 homes through a rent credit construction, and are now in the process of refinancing into long term debt.My first two parks were found using cold calling and direct mail.  

However, that would be like going fishing and never casting your line in the water while expecting the fish to jump in the boat.