I have a tankless propane water heater in one of my buildings. Works great. Instant on with water flow. Mine was installed in new construction. You do have to read up on flow rates and water pressure for maximum efficieny and proper operation.
But the tankless does have drawbacks. Instant on means that every time you turn a hot water faucet the heater goes on. And if power vented the motor turns on. You don't get instant hot water until the hot water reaches the faucet. True for all/most types. But to get real hot water you have to wait for the instant heated water to get to faucet. And as stated above few know how to fix these. If you go instantaneous tankless then ask manufacturer name of authorized repair person. That person may not be the installer. All plumbers will install these. Few plumbers can fix such or are an authorized repair person/company. And the initial cost can be high. They do need to be vented. And if not out roof then out side wall. More work and expense if retro fitting such.
In another building I have the old fashioned 30 gallon electric water heater. No moving parts. Nothing to break except the elements and depending on minerals in water may last a long time with no worries. The NH Coop and some plumbing stores have electric water heaters that are plastic with a thick styrofoam insulation. Some have a lifetime warranty. A tad more expensive then the standard electric water heater.
If I was constructing a new home I probably would put in a tankless instantaneous water heater. For an older home I would just put in an ordinary electric 30 or 40 gallon tank. And not have to worry about moving parts or repairs.
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