Water heater problems

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I think you have two separate issues. Your lack of hot water may be caused by a burned out element (more likely than a defective thermostat), or a deterioriated dip tube. First, turn off the power to the heater, then remove the cover over the heating elements. There should be an upper and lower element. Carefully feel the area around the elements. Is one substantially warmer than the other? The cooler one may be burned out. With a reliable continuitity tester, check both elements. If you fail to get a reading on one, it is burned out and replacing it shoule resolve your problem. (Turn off water, drain tank, disconnect leads, unscrew retaining nut and replace element.) Both elements check out OK with continuity tester? Then I suspect that the dip tube has deterioriated and must be replaced. The dip tube is a long plastic tube which is inserted in the tank at the cold water inlet. It's purpose is to direct the incoming water flow to the bottom of the water heater tank to be heated and then rise by convection. To replace the dip tube, you must turn off the electricity (to avoid burning out the elements), turn off the incoming water and drain the tank. Then disconnect the incoming water connection. Stick your finger down the inlet and try to jamb it into the dip tube and pull straight up to remove. Installation of a new tube is the reverse of removal. (By the way, you must have overhead clearance to allow the dip tube to be removed, as it must be extracted nearly straight up.)