Tank in garage
If you put a tank water heater in the garage, it still will take just as long to get hot water to your farthest point. The water lines run under the house so installing a recirculation line would either involve cutting the concrete in the garage to be able to get a pipe under the slab and then route the recirculation line underground outside and reconnect at the farthest point from the heater so the water can recirculate. I
The other option would be to route a pipe up in the attic and back down a wall to reconnect. This may be difficult if you have a block home because the water pipes are inside the wall. As a contractor, I would shy away from this attic insulation because I never wanted water pipes over a living area. If a pipe leaks or breaks, you will have interior damage and depending on where the pipe leaks it can get very costly very fast like $25-50K if it is over a bathroom or kitchen.
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