Sorry have been busy and not online for awhile. Thanks westend for standing up for me. Completely agree with everything you said. As an update to the water heater situation, The fitting that was in it was a drain valve. It was leaking so I never figured out it was valve til i got it out plus the part you turn to open and close it was a garden hose fitting which I had never seen before. All the valves I have seen have the 2 wings/ears which clearly is a valve. I thought was used to hook a hose up for flushing or something and then a plug should be placed into when said flushing was done. That was incorrect.
As for the rest of it, I found the pressure relief valve leaking as well so that got replaced. It is actually a steel tank instead of aluminum as we had previously thought. The anode rod screwed in from the back and was completely gone. It was down to the steel core and even that was almost disintegrated. I dont think it has ever been changed in 40 years. Despite that though the inside of the tank looked pretty good. Minimal rust. There was lots of sediment and scale that I flushed and its now sitting with vinegar solution in it about to be flushed again. I'm gonna run with this one and hope it holds out. If it doesnt then it will be easy to replace and if the tank leaks it should leak to the outside. I will silicone the back cover seams and staples so no water will leak to the inside. Thanks for everyones help on this matter.