Is this normal? The other day I started my car and was checking for exhaust leaks and noticed the cutout was dripping slowly. I touched the small puddle under it and it looked/felt/smelled like pure water, with no coolant. Is it normal for there to be that much condensation that water drips out the cutout? The location of the cutout is right before the rear axle.

 

It is a normal byproduct of your exhaust, nothing to worry about.

 

It's nothing but condensation. After your exhaust pipe reaches the right temperature it will stop.

Follow around a few cars on a cold morning and you will see a lot of them "steaming" from the tailpipes.

 

If you are worried about it just check your coolant level often. But I am guessing its nothing to worry about.

 

A good running FI motor will produce a little condensation, that normally burns off within 5-10 minutes...

 

ALL motors produce condensation. When you burn gasoline, one of the main products of combustion is water. Has nothing to do with it being "a good running FI engine". The cutout blanking plate is going to be the coldest part of the exhaust, and water will build up there in cold conditions.

 

Pay attention to some mustangs, they always have water pouring out of the exhaust pipes.