Sounds way to high. I know gas water heaters are a lot more expensive than electric. Electric shouldn't run more than a couple of hundred dollars. The house we just rented had to be replumbed because it sat empty for 9 months. House was built circa 1925-30. Thankfully we didn't have to pay for it but cost wasn't but about $1500. Then the dishwasher had to be replaced. It was 1970's vintage. I'm glad we didn't have to pay for all this. :)