My house has two water heaters. The one inside in the laundry room serves only that and the kitchen - even the smallest gas-fired tank is way bigger than what is needed. Plus, I don't like a tank inside the house and I could use the space gained by getting rid of it. I am in the central valley of CA so temperature rise needed isn't huge. My problem is that major manufacturers (AO Smith, Rheem, Rannai, Noritz) don't seem to make small tanks. A couple of questions:

1. What gpm capacity do you think is needed for a water heater serving just a kitchen and laundry room?
2. Many larger units are "condensing" while smaller ones I see (2.5 - 5 gpm) either are not or don't say. Is there an advantage to having a condensing water heater?
3. I don't recognize makers of small natural gas tankless heaters I see on Amazon (Camplux, Fogatti, etc.). What brands do suggest I consider?

Thanks!

If your going tankless i would get one that serves the entire house you may need to call your gas provider and have the gas meter or regulator upgraded as well