Buying a property with potential water damage

[Kish D.]

Would you buy a HUD home that is well under market value and is listed as being in good condition by the bank but it appears there could be some water damage (looking at pictures)? I am planning to do some more due diligence and getting someone out there to estimate the cost etc. but wondering if anybody have experiences dealing with water damage (mostly advice on whether I should steer clear of these types of properties)?

Thanks!