The basement flooded because the electricity was cut to the house during a storm.  

The house is a foreclosure in my area and needs quite a bit of work, which is exactly what I am looking for, but I am not sure how extensive the damage is to the plumbing and electrical systems.

Did some plumbing and added a couple circuits, nothing major electrically.  

As an example, if your house is 2000 SF and your home office is 500 SF you can deduct as a business expense 25% of property taxes, insurance, electricity, heat, etc...

And just wait until the plumbing, roof, and electric all gang up on you at the same time. 

. $25k sounds like a lot, but when you install new roofs, HVAC systems, hot water tanks, ceramic tile, new supply lines to angle stop valves, vinyl plank flooring in high traffic areas, carpet in bedrooms, faucets, fixtures, electrical panel updates, etc. it really is not that much and important if you plan on a long term hold.

HVAC, Roof, Electrical, Plumbing, Foundation, etc.).

Even if they have been in the house for 9 months, 12 months or 18 months, there is probably going to be more damage than you may think as opposed to higher-end properties.When many of my tenants vacated my lower income properties, they would tend to take parting gifts like electrical wiring, appliances and air conditioning units.

What or how extensive is the electrical work?

It needs new plumbing (cast iron), electrical, kitchen, BA, windows, doors, refinish floors, appliances, possible roof and remediation of a bunch of health inspector code violations.