Over the holidays I spent a couple days at my sister in law's place. She has a propane fired tankless water heater and I really like it. Since I need to replace my water heater I am gonna go tankless. Her's works great, has done so for over 7 years, temperature control is just like my tanked water heater and two showers can be running at the same time. I have a small amount of minerals in my well water so may need to install a filter. I don't know yet what brand and BTU rating her's is but will find out. Any comments?
Eric
Another vote to double check your propane regulator, pipes, and pressure. 200kBTUs is much more than many whole house furnaces, and you may need to upgrade the regulator at the tank, and may need one or two secondary regulators.
As
@duffer wrote, if you can locate the tankless heater in the center of the hot water usage, it will work better. If you can switch to PEX pipes at the same time, PEX has a smaller internal diameter, and therefore lower dead volume, so a faster time to hot water. Personally, I would not put an outlet under a tankless water heater, (Sooner or later it will leak.), but I would put one nearby.
If you can, I would try to get a tankless with a built in recirculating pump, as it saves the wait for water.
Personally, I am not fan of central tankless water heaters; I hate to wait for hot water, I dislike letting water run down the drain, and tankless water heaters have stringent requirements for water quality. If you have any salt (chloride) in your water, the heat exchangers (copper and stainless steel both) corrode. I would vote for a heat pump water heater; just don't put it in the house. Even the quiet ones usually sound louder than a refrigerator. (FWIW: AO Smith heat pumps don't work below 37F)
All the best,
Peter