Performed assessment of 33-year-old 40-gallon gas water heater showing significant deterioration including tank bottom rusting, extensive corrosion/lime buildup, and an improperly installed saddle valve on the hot water line to humidifier causing severe leakage. Recommended replacement with 50-gallon natural gas standard vent water heater based on home size (2300 sq ft) and occupancy (3-4 residents).