Hello all - first thanks for all the good info on this site. My house has two tanks: first tank is a 40, servicing kitchen, 1 full bath, 1 half-bath (never used); the second is smaller (maybe 25-30 gallons?) and services the washing machine and master bath.

The first tank is 16 years old and producing some yellow water, which may be coming from the tank, the galvanized piping, or both. I want to replace this tank and piping. The second tank is fine and has no galvanized piping.

I am considering the tankless option (outside mount) to replace both tanks and service the whole house. A side benefit would be essentially adding a pantry to the kitchen, where the HW tank is now located. First estimate is around $4500 for a Rheem 95 outdoor.

Any comments or concerns would be appreciated!