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Well, today I finally found a brand new water heater for pretty cheap. I have been keeping an eye on craigslist for a used water heater, but only found a couple of used gas ones. I found one today at work (Lowes) that a customer had returned and one of the guys cut to box off since it was trashed anyways. The heater is brand new, and since most customers aren't willing to buy one not in it's box, our sales manager let me take it for 135. Not bad since new it's 270. I've also found some blue 55 gal. drums on craigs list for 5 bucks, so I'll probably be picking up 3 or 4 before to long. Now I just have to wait until I have enough for the mixing pump, and a transfer pump, not to mention start looking for a source.
 
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