Adding a Second Bathroom / Tankless Water Heater

[Mike Welch]

After a seven month search, I've found a fantastic 3 bedroom 1 1/2 bath home which I have under contract. This will be my second home. My strategy is long term hold (I never want to sell my properties). I'm very excited to own this new home as it is really well located, and has a great layout with attractive features and good bones overall.

The house was owned for the last 40 years by a single owner who is selling as she is no longer to take care of the property as her husband has passed away. I'm anticipating at least $20K in rehab fees on the property as many aspects of the house need to be modernized.

I have two questions for the experienced landlords on this forum:

1) Second Shower: Currently, there is only a single full bathroom in the house. The second batch, in the master suite, has only a toilet and sink. Would adding a second shower make an appreciable difference in its appeal as a rental property?

2) Tankless Water Heater: The water heater in this house is the original 1956 (!) issue and needs to be replaced before I bring a tenant in. I could possibly free up space for the second shower by putting in a tankless water heater and repurposing the closet where the 'vintage' unit currently sits. Any landlords with experience with these units? Are they reliable and do they pose additional liability risks or maintenance expense I should consider?

Thank you in advance for your replies!