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good point.
I am going to get a quote on a tankless gas heater since the gas main is so close, but I am pretty sold on the hybrid electric. I'm betting the install cost for the gas tankless will still be 4 figures+ since they'll need to duct the exhaust somewhere.
Tankless will almost certainly be cheaper in the long-run. Electric is so much more expensive to run. As an example, we swapped out our electric dryer for a gas dryer, and it probably netted us $5-10/mo in energy savings.