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Looks like hot water heater is on the way out...
It's almost 15 years old...probably 30 or 40 gallons.. So, I'm anticipating that it can't be fixed.

Plumber should be here soon. Puddles underneath it.

Should I consider replacing it with a tankless one?

We did switch to tankless a few years ago but our decision was based mostly on space...we were remodeling the basement and wanted to reclaim the space the water heater took up.
Mostly happy with our switch but will say the temperature can be irregular with spurts of cold in your nice hot shower. Just occasionally but still.
Here is a good report to read:
http://www.consumerreports.org/cro/appliances/heating-cooling-and-air/water-heaters/tankless-water-heaters/overview/tankless-water-heaters-ov.htm

Thanks!

looks like I'm going with the old fashioned kind...50 gallon gas....

There goes $1100! Hopefully they will install tomorrow.

We recently had to do this. Our old one leaked slowly for a year and we didn't have to make a quick choice. If you are a do it ypurselfer the tankless heaters have to be installed or at a min checked by a real plumber so extra cost and they can be quite expensive. We ended up deciding on another gas powered one. My spouse the perpetual Craigslist shopper actually got one used (2 months old from a business that went under). So a nearly 1k job cost is less than $300. It works great and is slightly bigger than our old one which is great. It fills out Jacuzzi tub in one go!

So yah it sucks to replace but be sure to ask friends and family if anyone has done it so you don't have to pay a plumber and look for a used one or a direct producer purchase.

Ouch. I had to replace mine six years ago - no choice, the bottom gave way like literally to the day after it was warranted through, and flooded the basement. The replacement one started to leak last year and had to be replaced again. It was still under warranty so we got the water heater for free but the plumber bill was not in the budget! The furnace died the same week...some days I wish I still rented.

If your water is already hot, maybe you don't need to heat it any more? Just saying ...

Guys just came and installed new one.

Really had no choice but to replace it. IT was leaking and 15 years old, and it's so cold and snowy here it was awful just to wash my hands!

Oh well....there goes almost $1200! but at least we'll all be clean.....