I have a Rinnai tankless water heater and it is good. It takes a couple seconds for the water to heat up (due to the cold water between the heater and the tap needing to be flushed out before the hot water flows) but it consistently gives a nice steady temperature. If you go this route, don't cheap out and get a unit without enough capacity to suit your needs. If you need to run multiple hot water sources at once then get one of the larger models to prevent people taking a shower from getting frozen because someone decided to run the dishwasher at the same time.
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