We are remodeling a small (wknd home) beach cabin and trying to decide if adding a 2nd HWH (30-40 gal?) dedicated to a new upstairs 3/4 bath is a good idea or not. Mostly just 2 ppl -occasionally 4, long weekends, in PAC NW, so cool, damp climate.
Variables: space, usage, cost

We have a 20"x32" (d x w) space (no height restriction) adjacent to the bath that would be ideal for a dedicated HWH. So I am wondering the size tank that would be recommended for this use, given the space available.

Secondly, we hope this would allow a slightly smaller HWH downstairs (to run a 1/2 bath, W/D, and kitchen) - would a 40 gal HWH suffice? Dimensions of HWH are again important as the space is tight.