Going to replace my waterheater, currently a 75gallon tank unit. I am considering a
http://www.rheem.com/product.aspx?id=5AE02BB6-A8A9-49DE-8F3A-08DA596EB980
for a family of 6, 6 bedroom, 5 1/2 bath home. Anyone own a tankless waterheater and have good or bad things to say about the newer models?
The main problem with them is that they have to be insanely powerful to get a good flow-rate in Winter. To support 2 high-pressure showers simultaneously, you'll be looking at around 200,000 BTU/hr to ensure that you suddenly don't lose hot water flow if, for example, your washer starts filling with hot water.
The other problem is that the flow-rate regulates the temperature (until the water reaches maximum allowable temp). This means if you are having a shower, and someone else goes to take one simultaeously, you end up with wild fluctuations in temperature, between ice cold and scalding (unless you have thermostatic controls on the showers - in which case the flow rates will fluctuate wildly).
There are other issues with installing such extreme power natural gas appliances - specifically, they may require upgrade of the nat gas piping in the house, due to the huge gas flow rates required.
My personal preference remains a suitably sized hot water tank (if you have 5 1/2 bath, then I'd suggest about 100 gallons as an appropriate size) with generous insulation. For extra convenience in a large house, install a secondary hot water circulation pump and insulate the piping thoughout the house. A secondary circulation pump, is a small pump which is installed at the end of a long hot-water piping run, and which pumps the water through a return pipe back into the hot water tank. This ensures that the hot water pipes in the house are filled with full-temperature water, meaning hot water is instantly available at the faucets. Note that it is essential that all the pipework is heavily insulated, otherwise the energy losses from this system will be stratospheric.
The problems that people have with tanked heaters (running out of hot water, and long recharge times) are due to incorrectly specified tanks. The vast majority that I've seen installed are too small, or have excessively long reheat times. The other possible issue is that the tanks have not been maintained correctly and are full of limescale deposits. A lot of people don't realise, but in hard water areas a water softener is not a luxury. It is essential for the correct operation of any water heating equipment - tankless heaters are particularly sensitive to limescale buildup. (In some areas, notably in Europe, it is actually a code requirement that water heaters operate only on soft [or softened] water).