Build external bumpout for internal tankless?

Yeah my thoughts exactly with the 40 gallon.

I thought that's what you meant with the heat pump.

I found a few tanked heaters that will work with the small closet application. I'm definitely going with a direct vent or power vent though. It's so much money, but I just came home from a workshop regarding building systems and I don't want to take any more chances of backdraft than I have to. I suppose the safest bet is with an electric, but I think a direct vent will be safe. Reliance makes a skinny 21" that I can get for $1100.

I'll update my matrix and post.

justinae,

Retail pricing for the AirGenerate AirTap ATI50 $1,699 and ATI66 $1,999.

It should be 10-20% less expensive if you can get it through a distributor or contractor.

The Energy Trust of Oregon is now offering a $500 incentive, there is a $400 Oregon residential tax credit, and there is a $1000 rebate from the Northwest Energy Efficiency Alliance.

Thanks.