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Check to see if the water lines are reversed, Ive seen them hooked up backwards. The cold always goes the right side of the tank with the thermostat covers facing you. There is a dip tube inside the water heater on the cold water inlet side that directs all incoming cold water to the bottom of the tank, since heat rises the hot water stays above the cold water. I have also seen some where the tube was removed and some water heaters had a recall on the tubes because they were breaking down and dissolving. One other thing to check is if one heating element or thermostat is bad. you can remove the wires from the element and check it with a ohm meter or continuity tester, if it shows infinite resistance the element is shot. Most water heaters only heat one element at a time the upper element heats first when that thermostat is satisfied it will then start the bottom element. Last thing if the water heater is full of calcium deposits it will cut way down on hot water capacity, the lower element is usually yhe bad element because of calcium buildup
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