Small point of use Water Heater tanks

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RickG

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I am about to do a master bath expansion on our single story home. My current water heater is located in the garage on the complete opposite end of the house (approximate 80' distance). There will be a small utility closet adjacent to the bathroom as part of the expansion plans. Economically speaking, to supply all the fixtures with instant how water can I simply install a small point of use electric water tank that replaces water coming from the hot water line? I assume it would have to be just big enough to supply the fixtures for the time that is required to draw the cold water out of the hot water line, maybe 10 gallons max? After that, a cold water deverter valve would kick in and supply the fixtures from the main water heater. Is this how these sytems typically work and is there a better setup I should explore to adress the hot water issue?
 
A much better option in my opinion is to install a recirculating hot water system. Instant hot water from all the taps.
 
Yes, but I am concerned about cost and efficiency considering there is little overall demand for hot water in the household away from the main water heater.
 
I would be concerned with a period of tepid water after you use up the supply of hot water in the smaller tank. The cold water in the 80' line would create a layer of cooler water, which would mix a little bit with the hot water, but I would think it would still be noticeable.
 

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