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What type of water heater is best for you? First, you need to know the pros and cons of each water heater to determine your best option. Tankless Water Heaters Tankless Water Heater with a recirculation line Pros Endless Hot Water - Continuous supply of hot water that never runs out Energy Efficient - Water is only heated on demand, which minimizes energy loss Saves Space - Takes up less space in closets or rooms and can sometimes even be put in places like a crawlspace Lon