No flood but drywall is cut

[Mike D.]

I'm looking at a place that isn't in a flood zone. It is a two story with the drywall completely removed on the first floor and cut four feet up on the second floor. The majority of the studs are coated in a white paint. 

Obviously I haven't looked too far into this property yet. I'm just going off of mls pictures.

What could have been the problem? Leaky pipes from a second floor bathroom? Mold?

I'm going to ask the realtor but I just thought I'd ask here as well.