Jack,
I recently replaced an old State water heater with an outside Rinnai
tankless (model 2532) about a month ago. My water heater was in the attic
which I did not like, so I was planning to re-locate whatever replacement I
ended up choosing. My neighbor had gone with a tankless about a year
earlier and they had liked it, so I decided to go that route myself. No
issues whatsoever with it heating water hot enough, and plenty of it. I
have four people (two adults, two children) in a 2400 sq ft home in North
Carolina and so far am very pleased with my choice.
Just for comparison sake based on different price quotes I was given, the
tankless unit cost me $400 more than a traditional
tank unit would have cost me (in both cases I was moving the location of the
water heater). For me the extra cost was worth it to solve the attic
locaton problem I had with a solution that I did not have to deal with in my
already cramped garage.
YMMV.
Bob T.

"Jack" wrote in message
oups.com...
Considering switching to tankless water heater. Busy house, lots of
kids, so the neverending supply seems attractive.

I have always heard that they have trouble really heating the water hot
enough, especially here in the upper midwest when water comes out of
the ground pretty cold (maybe 40 degrees??)

Any experiences out there?