You do not run out of hot water, and do not lose energy in storing hot water.
A tankless water heater is much more efficient as it "flash" heats the water.
A water heater usually heats water stored in a tank and then sends it into the pipeline. A tankless water heater has no tank and heats the water during its passage and so heats the water only when one asks for it.
Tankless water heater installation costs around $1200. But, they save money each year in energy costs, so, it is possible to recoup the money over time.
No, each must be vented seperately.
Yes, you will need a hot water tank for your water heater. There are, however, some tankless water heaters on the market. They cost a bit more, but there is a federal tax credit on them.
A tankless water heater is much more efficient as it "flash" heats the water.
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