Your tank is rusted out and needs to be replaced.
Link below is a troubleshoot for leaking water heater.http://waterheatertimer.org/Leaking-water-heater.html
Protect yourself first:
If your tank is rusted, there is danger of rupture.
My friend welded his leaking tank, but he assumes the risk.
Ruptured tank can cause massive damage and water runs until it is shut off.
Hot water tank is under pressure because hot water expands and pushes against tank wall.
Turn off water to tank.
Turn off power supply:
Electric: turn off circuit breaker.
Gas: rotate knob to pilot so pilot stays lit but burner will not fire. To turn back on, rotate knob to ON.
Open hot side bathtub valve and relieve pressure on tank.
You can limp by with rusted tank by turning water heater on when hot water is needed.
Shower uses 5-9 gallons hot water
Bath uses 12-15 gallon hot water
Ordinary gas heater makes 41 gallons hot water per hour
Ordinary electric heater makes 20 gallons hot water per hour.
I buy water heaters at Lowes, Home Depot, Ace.
Look for scratch and dent models.
Buy drip pan for water heater.
Wrap electric heater totally with insulation except TP valve.
Buy new flexible connectors for water lines.
Offer 15% less than marked price on tank, because the store makes money on additional items.
> Most people can install their own electric heater since you just connect water pipes and electric wire, and it's done. Read link below since there are tips that help you buy and install electric.
> Generally people are nervous about installing gas water heater, so step-by-step instructions are shown on link below. Remember gas line is under less pressure than water line, so if you can install a water pipe, you can install gas line to water heater with crescent wrench, and soapy water to check for leaks.
How to install gas water heater:http://waterheatertimer.org/How-to-install-gas-water-heater.html
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