I debated for quite a few years before making the switch to a tankless water heater, but a tankless component is a bigger initial investment, however it requires a licensed plumber to handle the replacement; Tankless water heaters can struggle to keep up with demands when more than 2 water sources are used at the same time.
I hoped that the advantages of a tankless alternative would outweigh the negatives, then one of the biggest perks of tankless water heating is the smaller sized equipment.
The tankless water furnace is about the size of a small briefcase and mounts on the wall. It frees up pricey space in the basement, however rather than storing water in a large tank and repeatedly reheating it, water is heated as needed. This avoids the water absorbing harmful minerals and contaminants from the tank. It eliminates standby energy losses and waiting for water to heat up, then my buddy and I used to need to let the faucet run for a considerable amount of time in order for the water to heat up. The tankless water furnace is activated immediately when a faucet is opened up, then water passes through a heat exchanger and is right away hot. There is no concern with running out of tepid water. There is no threat of a tank rupturing and flooding the basement. A tankless water furnace is also easier to repair… Parts can be replaced, resulting in about twice the repair life of a tank-style water heater. I like that my friend and I can customize temperature settings to our liking. The tankless water furnace was a great decision and a smart investment for my household.