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Virginia, Northern Neck | Biggest problem with tankless (electric or gas) is scale buildup - all your water goes through a fairly small heat exchanger.
Yes, you save space, but you need to do an annual cleaning.
Also, as others have mentioned, lots of control problems with tankless.
Tank-type hot water heaters (electric or gas) last a lot longer, cost less initially, are simple to troubleshoot, and you can locate them in a shed if you need more space.
I even prefer tank-type heaters (10 gallon ones) for RVs.
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Tankless hot water heater
