I have sediment (reddish-color) coming out of all my faucets...

[scojo007]

I have sediment (reddish-color) coming out of all my faucets in the house when the water turns hot. Is this rust from inside my water heater? And if so, do I need to replace my water heater?

[n_flames]

A good way to flush the tank, install garden hose at drain valve.Turn off power if eletric or turn off burner if gas, then turn off water supply to water heater,open the hot water at tub or sink,open drain valve and drain tank empty.When tank is drained open water supply to flush tank till water is clean.If drain valve plugs up with deposits you may need to remove it to clean it. BEFORE turning on the power to the W/H,turn on the water suppy to the W/H.Then turn on the hot water at a sink or tub to purge air from W/H tank.If you turn on power first you will burn out element(s) if it's eletric.
http://www.waterheaterrescue.com