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As a licensed plumber, I'm not 100% sold on the idea of tank less water heaters being the best choice out there for every situation, but this one is an ideal application of the technology....
Typically, a large part of the cost of installing a tank less is in the moving existing water lines and up-sizing gas lines. In new construction or a substantial remodel, these costs are negligible...
If I were doing this job for you, unless there are some details I'm not aware of, I'd advise you to go tank less......
I have had a tankless hot water heater for at least 5 years and have no problems whatsoever.
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