Tankless vs traditional hot water system

Bronx, NY · Member since 2020 · 94 posts · 27 votes

Good evening bp family. I would like to get opinions on hot water heaters vs tankless heaters. We have a 3 unit building with 3 separate water heaters for each unit. There is only 1 meter for the house so we have to pay for water. 1 of the heaters need to be replaced. Some say I should replace it with a tankless system because of the energy efficiency. Others say to put a regular hot water heater in to keep the replacement cost down. What are your thoughts?

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Alecia LovelessPro Member

Member since 2019 · 3k+ posts · 2k+ votes

@Steven Jefferson I’d stick with conventional hot water heaters. Tried and true, pretty set cost and lasts a good while.

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Paul Vail
The Triangle, NC · Member since 2021 · 189 posts · 117 votes
4y
Originally posted by @Bruce Woodruff:
@Paul Vail Interesting, but you went from an electric tank unit to the NG tankless. It would be more relevant if you had gone from NG to NG I would think...

Bruce, absolutely! It's the experiment I can't do until another house comes my way with the right conditions. As a really green newbie BP investor-wannabe, that might be a little while.   I hope someone else sees our conversation and has done the experiment (and will share). Real world experience stories are why I'm here.
I'll add in one other idea: at my retail gig, one of my contractor customers was modernizing a large apartment complex (>300 units).   These were mid90s models, in need of serious facelift love. My job included spec'ing replacement low boy electric water heaters while the units were getting remodeled.   It became imperative when the low-boys that dated from '96 would unexpectedly let go - flooding the unit and the units below them. This happened much more than once during our relationship. Eight or 12 or $15k of remodel would be trashed over night.
As a newbie here, I know I'm naive: aren't landlord investors here constantly in fear of such headaches?   I don't know where the water heaters are located for the OP on this thread. Attic, second floor, basement, outside store room?    If the existing heaters are inside, but in a location that could trash/flood the rest of a rental or risk rentals downstream, and he has to replace them anyway, maybe considering an external tankless should be on their radar?
I don't know these things -- probability of a 'worst case' scenario, how often folks have water heaters go sideways for a tenant... I look forward to learning from all of you.   Thoughts?

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
@Paul Vail While it's not real world experience, this is a good read from Consumer Reports about the subject.https://www.consumerreports.or... Average payback for a tankless v tanked WH is 25 years and the average monthly cost to run them is only $50 less for a tankless.
My real world experience - which included installing a new WH in virtually every remodel and new build I did for decades - showed me that tank water heaters were the way to go. Too reliable and barely more expensive. Tankless WHs just have no significant benefits.
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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
4y
Tankless is awful. I undid one of my tankless units as had issues in winter and am about to undo another that has issues with multiple airbnb guests using hot water at same time.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
@Henry Lazerow I've removed a couple as well......and had many clients complain....
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Fikret Sivac
Chicago, IL · Member since 2017 · 25 posts · 24 votes
4y
You are paying for the water. They are paying to heat the water. The cheaper to heat the water the more they will use. The more expensive it is to heat the water the less they will use. So who should save money? You or the tenants?
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Josue Vargas
Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
4y
Without getting into too much detail, the question is for how long are you planning to keep the property? In other words, Life Cycle Cost analysis: Initial, Service, Preventing, Operating, etc.

Pros and Cons - tankless life expectancy is almost the double, but more expensive on the front end, and they are better energy efficient appliances. Expensive units depending on the demand, a tankless unit will be considerable more expensive They cannot handle too many simultaneous users on one water heater. Plumbing adjustments: are you able to have all hot water plumbing lines operational if you exchange the heater tank for a tankless unit throughout the property? (I will assume you are if you are replacing it on the same location and hook-up to the same line, but just double check with a plumber). These are just few things to think about switching from a tank to a tankless water heater unit.
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Nicholas Valente
Contractor · Hopedale, MA · Member since 2020 · 31 posts · 29 votes
4y
@Steven Jefferson
I didn’t read through the section but as plumber myself. I would recommend staying with a tank and using the money you were thinking about spending on a tankless install and separate your utilities. Far better return. Just a little bit of industry info. They are in the works right now to sign into law the elimination of all 80% furnaces/water heaters by 2025. Might be a great investment to buy and store multiple back ups if you have a few rentals in the same area
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OP
Bronx, NY · Member since 2020 · 94 posts · 27 votes
4y
Just for some added info. I plan to keep the property as a rental long term. And the water heaters are in an unfinished basement that if something were to happen it won't affect the tenants. I did think about adding 2 additional water meters but Harrisburg pa said it was not possible.
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Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
4y
@Account Closed regular tank water heaters are cheaper and less costly to repair. Also, they are usually easy to replace. In addition, it came in handy during our Texas "snowmageddon" this past February as it held 40-gallons of clean warm water when the power and water went out for four days. We tapped into it for drinkable water for days until water was restored. Your tenants can do the same in an emergency.
[email protected]512-674-5478
Ryan Kelly Group - Keller Williams5110 Reviews
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
@Ryan Kelly Yes good points. Tanked heaters have these other advantages as well. Water storage being prime amongst them.
And of course, everyone should have a good insulating wrap on their tank plus pipe wraps on the incoming and outgoing pipes. Todays tank heaters are super efficient....but every thing helps.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
4y
@Account Closed I would stay with tanks given your setup. I am assuming they pay electric and a new tank unit will likely be more efficient then the current unit. For decreasing water consumption there are a lot better options.
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Matt Bishop
Rental Property Investor · Dallas, TX · Member since 2020 · 50 posts · 41 votes
4y
@Steven Jefferson, I would use the opportunity to get a separate water meter and/or Electronic Metering for each unit. I would inquire with the city water department and ask for advice. I concur with others who say stick with traditional water heaters unless building codes require thankless.
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David C.
Accountant · NC · Member since 2017 · 64 posts · 26 votes
4y
@Seth Borman this is a very clever thought & could work in reducing hot water consumption (assuming it still meets any guidelines based on occupants).
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Bryce Kephart
Rental Property Investor · Dickinson, ND · Member since 2019 · 15 posts · 1 vote
4y
@Steven Jefferson
Write it up in the lease so the tenants pay water & utilities unless of course the meters aren’t separated.
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OP
Bronx, NY · Member since 2020 · 94 posts · 27 votes
4y
Someone mentioned hiring a plumber to separate the meters yourself. Foes anyone have any experience in doing that
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