I have an undersink Rheem tankless water heater for my pool bathroom. I didn't want to run hot water to the outside bathroom so I had the tankless water heater installed for the sink and shower.
It works fine for the infrequent times we need it.
These work on flow rate rather than traditional storage capacity of large tanks that keep 40-50 gallons of water at 120 or so degrees all the time.
https://www.rheem.com/products/resid.../#buying-guide