This would include the water intrusion in the electrical panel.  

Sometimes they would disable the electrical panel as well.I distinctly remember one of my colleagues who did it just because the rent check bounced & he retired a very wealthy man with a lot of 'doors'. 

I wouldn't put carpet back in it; laminate wood grain will cost ~ $0.77 SF and 12' wide tile pattern vinyl sheet ~ $0.49 SF plus installation. 30x80 interior door slabs: smooth hollow primed $44; six panel hollow primed $54; either will require cutting/installing the lockset and mortising for hinges (handyman work).

Oftentimes there's a lack of ground in these wire runs, no GFCI's in wet areas, combined with aging electrical panels. 

Are there 4 electrical panels and 4 gas meters?  

So, they simply put a shower in the garage and add an electrical panel maybe, and put in a toilet. 

@Steven Epps, @John Warren, Account Closed It looks like I am going to have to get the electric panel replaced. 

The exception we have to this is if it's a house with paneling, because paneling is a lot more aggravating to fill depending on the size; the spackle doesn't grip it as well as it does regular sheetrock. for those houses, we provide a starter pack of Command strips and note in the house info sheet that those are what are to be used for hanging.

We decided to put a w/d unit upstairs and a separate electrical panel.

I just think you did a cheap renovation and it shows, I mean you painted over wood panel, no granite in the kitchen, old cabinets w no knobs, you didn't open up the space between the living room and the dining room, you didn't tile the bathroom shower, who knows what the vanity looks like and its a 2bd/1 bth with a house in a not great area.