It's pretty silly to replace your electric tank water heater with a tankless gas one with only 2 people living in your home. You only pay a couple hundred dollars to heat hot water for the year so there is no benefit to tankless gas except if you want that extra $15/month charge plus gas usage every month.
If you want to go high-tech, get one of those heat pump water heaters. That will save a lot each month and also cool off your garage at the same time. Just need to find a reliable installer.
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