Hot water heater replacement in new Rental size

[Jordan Hiebert]

hey bigger pockets! got my 1st rental and closing on it tomorrow!! When I got the inspection, the hot water heater is over 20 years old and needs replacing. The house is a 3/2 and currently has a 40 gallon tank. It is in the garage by the washer/dryer hook up and is going to be a tight squeeze to put the new hot water heater and the tenants washer/dryer. Question is this. Should I replace the old hot water heater with another 40 gallon or should I bump it up to a 50 gallon for a few more bucks?