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For what you have described, it would be very easy for me to justify a couple thousand dollars worth of sealing and insulating materials (plus effort), combined with a modest (1-ton) inverter mini-split-style ground source (or...ahem... air source) style of unit. A single zone unit could quite possibly keep the water heater from burning 3/4 of the time, and the envelope could be made 25% (or more) tighter
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I should have said this earlier. I just built my
3 years ago. at the time I insulated it very well. The ceil is 2 inch of closed cell spray foam with R13 fiberglass covered with 3/4in knotty pine boards. That's about R25 to R30, (would have put in more but ran out of room). The walls are 1 1/2 in foam board with R21 fiberglass with 3/4in knotty pine boards, that's about R25 to R30. The floor has R13 fiberglass, cover with 2in foam board so that's about R25. Yes I have a few areas the could use a bit more insulation and I intend to do that a sometime.