You will also increase the time to get hot water for your shower, etc.
On a side note, I have no idea what a tankless water heater costs, figure $200 or more for the connection, and if you are not handy the additional cost to flush (clean) the tankless water heater yearly. There was a company advertising on ToTV to replace a conventional water heater for under $900, and there was a 10% discount with the ad. I just did my own, water heater and some plumbing supplies was around $550, took 2 neighbors to help, and about 2 hours to complete the plumbing, so the $800 to $900 is not a bad price.
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Pennsylvania, for 60+ years, most recently, Allentown, now TV. 
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