Water Heater
Don't pay any attion to what these guy's are osting about electric
that romex was appoved medod when it was installed!! and whould be grandfathered in even if the code changed in your area, people need to remember when quting something about working in anthor state that the codes may be differant???
the place to check on electric is the "N. E. C." national electric code,
as far as water heater goe's it's O.K. the nipples on top are dielectric which means they will cause corrsion between copper pipes and the connections!!
the vent hole in wall was for old style GAS FLOOR HEATER you want to plug that to prevent heat loss in the winter!!
you do need to change out T & P drain pipe, most places will let you run into drain pan if you have 1" drain running outside!!
you do not want running under floor as stated above so it can be seenalso you don't want water running under floor as could cause dry rot to flooring and joists,
you probaly need a thermal expansion tank installed on cold water pipe
the peration should be O.K. but you want to make sure it's easy to remove so wtr/htr can be serviced
JERRYMAC MASTERPLUMBER & MASTER ELECTRICIAN