The Gas Fired tankless water heaters are wonderful. However, they require a large amount of gas to them. Some are over 200,000 BTU's.
We looked into them as we are building an addition on our home that will include an enlarged master bathroom with a whirlpoot tub. The plumber said that a tankless water heater would work but, we would need to replumb all of our gas appliances as the type of gas supply we have wouldn't feed all that we wanted to do. I guess we have a low pressure supply system.
The plumber recommended that we install a recirculating line instead. It is plumbed into the hot water pipe at the tub and runs back to the hot water heaters flush out valve. The plumber said that we probably wont need to pump it as it will act as a close convection loop. (Hot water is lighter so it rises and as it cools off, it will get heavier and then drop back down the line to the HWH. )
Another alternative is to use an electric point of use hot water heater. (COSTCO has one, here is the link to it
http://www.costco.com/Browse/Product...114*1240*4311*
Good luck, Dan