C.C.
I am in the construction industry and have several major restaurant clients who have gone to tankless hot water heaters. After our experience installing and maintaining them commercially, we put one in our house. We love it. You'll never, ever run out of hot water, even if you have multiple people taking a shower at the same time. We have not had an issue with having to wait for the water to get hot. The advice I'd give you is to hire a qualified contractor to install it - someone who has experience in installing tankless hot water heaters. It's easy to go wrong (for instance, many tankless hot water heaters require stainless steel venting, and an inexperienced contractor might decide aluminum is okay - it's not, and will void your warranty). If you're really in Auburn, you could call the Ferguson branch in Sacramento (Army Depot) and speak to Dave. He knows a lot about hot water heaters and can help you choose a good one for your needs. Trenchless Plumbing in Sacramento has tons of experience with installation, so they're one contractor you could call for an installation quote. (I'd help you out myself, but we don't do residential.)
The one thing you may need to take a look at is that all tankless hot water heaters require a certain amount of flow in order to trigger the hot water heater to turn on. If you have super low-flow shower heads, you may need to remove the restrictor in order to have enough hot water flow to cause the heater to turn on. However, with most of the models we've seen, that's not an issue. Just something to keep an eye out for. Good luck!