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Thanks everyone for your responses. My plumber is coming back out to take a look at our options. Hopefully between his knowledge of plumbing and my common sense we can figure something out. Your...

Thanks for the responses so far. There were a couple questions in the responses so I will clarify a few things ...

I can always put in a 50 gallon tank in the original location (nothing bigger...

I'll do my best to explain my predicament. I had a house built and installed Takagi TM-1 on demand water heater. It was located at the far end of the house away from the gas meter. We installed a...