You may be able to get by with a 3 gallon per minute unit. However any other hot water use at the same time means a cold shower. With a 6 gallon or more per minute unit you can take a shower and run the washing machine at the same time.
If your electric hot water heater is in good shape you can leave it connected before the tankless and turn off the circuit breaker. Then if you ever want all the hot water in the world, or you run out of propane, just turn on the breaker.
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