What do you recommed I do?

Do I need a chimney liner? Or a camera sent down the chimney first?

Thanks.

Have someone like a chimney sweep check the top of the chimney. Around here, masonry is used to seal the top and it can degrade over time and leak.

How old is this chimney? Did the effervescence start recently?

Are those water stains on the white ceiling? If they are then that may be a clue as to what is causing the problem.

Not uncommon - I had the same problem. Rainwater is getting inside the chimney somehow. You need a cap (if you don't already have one) and to check the crown for cracks/separation. Also check the flashing where chimney meets the roof.

I have a cap and had flashing checked.

I have a chimney guy coming. On the phone he seemed to think it was probably condensation in the chimney because we only have the hot water heater venting through chimney and it probably does not get hot enough to burn off moisture. Our furnace vents to side of house. He was suggesting a chimney liner.

Does this sound reasonable or am I just being sold a liner?

Yes, you need a liner.

You may need a liner (or a longer vent pipe in the chimney) but I don't know if condensation from the hot water heater would be sufficient to cause that amount of efflorescence.

Is the flashing on the chimney cut into the mortar between the bricks and properly sealed? Did he check for cracks in the chimney crown?

You may need a liner, but, I do think you have a leak somewhere too. Might have someone check in your attic. It appears that your ceiling has water damage in the corner. The cause of a leak like that most always has to do with flashing.

You may need a liner, but, I do think you have a leak somewhere too. Might have someone check in your attic. It appears that your ceiling has water damage in the corner. The cause of a leak like that most always has to do with flashing

Because that is a brick chimney, I bet that the top is concrete and this concrete has eroded and is leaking into the chimney.

Thanks for all the good info.

How much will a liner set me back?

"How much will a liner set me back?"

Prices where you live may be totally different from what they are around here, but I recently received a quote for a little under $500 to have a 5" chimney liner installed in one of my rental houses.

If the top is leaking around the chimney, a new liner won't help.

I just had the chimney inspected, he used a camera. Efforvescence all down the inside and gaps in joints. Said water was coming through exterior bricks. Too much deterioration to repoint.

I need entire chimney rebuilt. $12k estimate.

Ugh.

"Said water was coming through exterior bricks".

So just spray an external sealer on the exterior of the chimney.