I have a similar situation but not quite as drastic. In my case I believe that the problem rests in the thermostat set point at which the water heater starts heating up. I have it set for about 130 deg F and the water heater does take it up to this temperature. However the temperature of the water has to drop quite a bit until the water heater kicks in again. When it sits without usage overnight the water temperature drops down to a “low†level but not low enough for the water heater to initiate a heat cycle. So in the morning the water is at its “coolest†and therefore the first person does not have an over abundance of hot water. As the water temperature drops due to usage, the water heater kicks in and heats up the water to the maximum preset temperature. Now the water is at its hottest so you have plenty of hot water. Just my .02 cents worth.