The disadvantage of tankless is that you may not have enough hot water to supply multiple simultaneous uses (running 3 showers at a time, for example). So what I'm thinking is a tankless and a tank heater feeding into a mixing valve such as a Watts LFMMV. Set the tankless to deliver 110F and the tank to deliver 120F and set the mixing valve to supply 110F. Then under normal conditions the the mixing valve calls for "cold water" of 110F from the tankless but if the tankless can't keep up and falls below 110F then the mixing valve mixes in hot water from the tank to maintain the 110F. Would this work?

There is a LOT of disinformation on these forums about on-demand tankless units, ESPECIALLY the electric units. First, energy cost savings is NOT a reason in itself to make the switch. No reason alone is sufficient. It is the total package, in light of your particular lifestyle, that will dictate the pro-con outcome of the decision making process. First, tankless units save space -- a lot of it, especially electric units that do not need to be vented. In Texas we have no basements, so that can be an important issue. Second, an electric unit is unlikely to blow up, unlike anything using natural gas. Third, there is an endless supply of hot water, which in a successive-morning-shower household like mine, is a really important issue. And finally, yes there is some documented comp fuel savings (electric tankless over electric tanks, or gas over gas), that is really offset by the added initial cost of the unit plus upgraded electrical service or gas supply line sizing. Moreover, there ARE full-house electric units out there that provide plenty of water, unless you plan on taking two showers simultaneously while also doing your laundry and running the dishwasher! And if that's your bag, you can run 2 or more electicals together. Or get a really big gas unit. Bottom line, nearly every nay-sayer of tankless units ignore the pros and focus on a single con - cost, cost, cost. Well, we all don't drive a Ford Focus for a reason. Some of us enjoy our Buicks, Porsches or Camrys even though another car would get us from point A to point B cheaper while using less fuel etc etc etc. Full disclosure: I have a Steibel Eltron Tempra 36 whole-house electric unit. Love it. My electric bill went up nary at all.

Guys if you read the post, the reason the tank water heater was so expensive was due to the construction required to get his house up to code. I personally like my tank heater. If your changing from a tank to tankless there is alot of work to do. Moving water lines, moving gas lines (possibly upgrading gas line size too) and running a new intake/exhaust if using gas, upgrading the main service amps if using electric. Some things to consider Tank Heater Pros Costs less to replace in the future Easier to maintain (Tank water heaters are easy to flush out every year) Easier to install (dont have to upgrade gas line or main service amps) Gas water heater will still operate in power outage (electric will still have some hot water to use for a while till power kicks back on). Cons Not as efficient as tankless No Tax Credits Hot water limited by FHR (first hour rating) Tankless Heater Pros Unlimited hot water More efficient Saves space Cons Will cost more in the future to replace (there is no guarantee the tankless will last longer than a tank version, the heat exchanger can go bad and that is the most expensive part of the tankless) , Harder to maintain (you need to try to clean those tankless heaters out every year with a descaler so they stay working efficiently) Harder to install (upgrade gas line or main service amps) Tankless heaters have a limited throughoutput. While it is unlimited hot water, it can only supply so many gallons of hot water at a time Will not operate in a power outage. A tankless water heater is controlled by electronics whether the heater is gas or electric does not matter. Requires minimum gallons per minute from city water supply, some people have not been able to install due to that problem. Consumer reports note that users complain of inconsistant water temperatures. http://www.consumerreports.org/cro/appliances/heating-cooling-and-air/water-heaters/tankless-water-heaters/overview/tankless-water-heaters-ov.htm Another good site to look at: http://www.waterheaterrescue.com/pages/WHRpages/English/Longevity/tankless-water-heaters.html

You can be sure it's less safe. The floors and exterior walls of basements are often impermeable concrete or masonry and any leaked propane remains and accumulates. Upper parts of a basement are typically wood structures and generally are not airtight so that any lighter than air gas can escape. There are often "crawlspace" sections and even vents. At worst, natural gas can escape up through the stairway and dissipate into the rest of the structure (or to the outside if that's where the stairway goes) so that no explosion danger is present. All the same, natural gas doesn't remain as a pool of flammable gas in the basement as propane does. As an aside, explosions are a risk on recreational boats and are not uncommon. The volatile vapor of gasoline is also heavier than air like propane. There's a risk of explosion because of the possibility of gas vapor collecting in the bottom of the hull. Larger boats with inboard gasoline engines have "sparkless" exhaust fans in the bilges that are turned on and run for several minutes before starting an engine, to remove gasoline vapors that can cause an explosion when the engine is started. For the same reason, in recreational size power and sail boats, compressed natural gas or (historically) alcohol are preferred for cooking appliances. I had a 35 foot sailboat some years ago and it had an alcohol range and oven, they're now less common. Boats that use propane have venting systems for the risk of vapor in the hull. It's also a reason that even smallish sailboats often have diesel engines, because diesel fuel vapor doesn't present an explosion risk as gasoline vapor does.