Should you decide to get a tankless water heater, beware. I had one in my home and when it broke down, we had a devil of a time finding any plumber to fix it. When I did find one, they had to call to Houston, TX in order to find parts to fix it. It lasted less than six months and broke down again. At that, we went back to a conventional gas water heater.
So.....If you do decide to get one, make sure that the company you purchase it from and who is the installer of said water heater, that they are also able to have parts readily available, and can indeed fix it.
Good Luck