First remove the heater and repair the floor on your terms with the idea that you may or may not have to replace the heater second wait untill the heater quits at the worst possible time or more likely falls through the floor again at the worst possible time personally i would rather plan on doing it when i feel like doing the job.
Replacing floor under water heater.
Add connector hoses if your old water heater didn t have them.
If it has overlay include that in the measurement.
Make sure the hot water faucets are still open and turn on the water supply.
Let the water flow from each faucet for one minute before turning them off.
On most models you will need to remove the plumbing connected to the water heater and disconnect the power inside the access panel.
This is the center of the room and the beginning point for tiling.
Remove a floor vent using a screwdriver.
Stretch a chalk line between two opposite marks and snap a line across the floor.
For gas water heaters be sure to turn off the gas line leading to the water heater and disconnect the line where it enters the tank.
Repeat the process with the remaining two marks.
Put the water heater in place and connect the pipes.
If you don t have a vent set the blade to cut 1 inch deep.
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The home mender dustin luby shows us how to repair that unsightly rot hole in your floor to prepare it for a new.
This keeps air from getting trapped in the water lines.