Rental Property Investor · Sault Sainte Marie, MI · Member since 2015 · 25 posts · 4 votes
I'm considering buying a 2 story 4 unit building. Each is a 2 bed 1 bath. It has common water and gas but separate electric meters. There are 5 meters one for each unit and a common area one. Each has 4 20 amp plug fuses. The building needs a water heater. I'm wondering what would be my best option.
1) traditional gas water heater in the common basement. If so what size/how many?
2) tankless electric water heaters in each unit. This would shift some electric cost to the tenants. Would I have to upgrade the electrical? Cost?
The Tankless will cost a little more. But well worth it. You're tenants will never run out of hot water. It's way cheaper to operate and there is no maintenance on them. Take up very little space.
If you go electric tankless in each unit, just be aware that the smallest types of unit that will work is a 60amp heater. That won't work with your current 80amp per unit electrical service so change will be needed.
If you're upgrading just one common heater, I'd go with a large gas tankless.