While not The Villages specifically re the experience, we did switch our tank heater to a tankless one several years ago in a house in another state. As others have said, significantly more upfront cost. For us though, the concern was the performance. We hated it! Yes...it was great if you had company and several showers going on in short order while perhaps using other hot water (i.e. sinks, dishwasher, washing machine etc.). Aside from that I saw no benefit. And, we hated the increased wait time on the front end. When first turned on, it took much longer for the hot water to "start" than the tank system. I would definitely not do again at any house we own.
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