[jeff5may]

Wyr,

Please don't be conned into buying a 3 or 6 year "trailer" water heater. Yes, they are inexpensive. No, they're not worth it. You would be better off buying a point-of use unit for the same price. Just ask yourself: "How soon do I want to have problems?" With a $199 electric water heater, it may break being installed. If you get lucky, it might even last a decade.

If you have a natural gas water heater already, try your best to replace it with another gas unit. The newer "not cheap" units are much more efficient than their predecessors, and natural gas is cheaper by the BTU anyway. Having a new unit installed to code might cost extra, but the long-term savings will pay this expense off along with the unit.

On the other side, not all point-of use water heaters are built the same.

The tankless "under-counter" units are the most efficient, but generally will only supply one faucet. They are meant to be run using the cold water supply for a source. They depend on a flow-meter (not a thermostat) to energize the heating element. They generally will not provide much more than 1 GPM of hot water, and exit water temp is very much a function of flow rate. Sized correctly, they will provide an endless output of hot water. Most importantly, they will not scald you with super-hot water, due to the flow-meter having a low-flow threshold that will not allow the unit to produce scalding water, ever.

The point-of-use units with tanks in them are basically little brothers of the full-size units. They have thermostats and tank losses. They can be plumbed into the existing hot water lines. They will not provide endless hot water, but the water coming from the main DHWH can replenish the hot water supply before the point-of use unit runs out of hot water during periods of high demand.

Both types of point-of-use units being sold at Slows and Home Despot are priced in the "affordably disposable" range, so expect them to last a decade or less. If you are looking for something that will last longer, it's gonna cost more than $200. The factory authorized plumbing supply warehouse in town might have 1 in stock to look at, but will be able to get the one you want in 3 days.