Anonymous wrote:Don't they have to be on an exterior wall though so that could be limiting for some folks?
There are some that are affixed to the outside of the structure, but others are made to be inside. They do all vent to the outside, but that's not hard to do. We had one that had a vent through a crawl space to an outside wall. The only issue was making sure the vent didn't get blocked with snow in the winter (one winter we lost our hot water during a snow storm until we figured out the problem & cleared the vent. Bird's nests can be an issue, as well.). One house we owned had a large unit in the basement that supplied the first two floors, and a small unit in a closet next to the master bath that supplied only the master bath.
My only critique is that the label "instant hot water" isn't really accurate. It takes a little bit to get hot water, especially if the unit is any distance from the point of use. If you really want "instant" hot water, you need a tank with a recirculating unit.
After having several of these things, another issue is that the hot water doesn't necessarily adjust instantaneously and precisely with a turn of the knob. Sometimes (and some units are worse about this than others), turning down the hot water a bit will cause the hot water to momentarily cut off completely. Also, when our plumber went to install one in our new addition, getting our thermostat controlled shower knobs talk to the water heater wasn't easy. Our (excellent) plumber spent hours on the phone with the manufacturer before they figured out how to make it work (but it works find now).