Ok, this is a debate we've been having around here lately, especially since out 19 yr old water heater is acting up and we'll be replacing it soon.
Right now we have our water heater inside, downstairs in the basement. The basement has been converted to living space so the heater is next to the washer and dryer and all that is in the "master" bathroom. Tell me what the cons are to moving the water heater outside to make more space in our bathroom. We had one outside before in one of the old places and never had any obvious problems. We'll have to build a water heater closet. I figure we'll lose some heat with it out there, but how bad will it really be? Any thoughts? I have read that we actually get some heat for the house by having it inside, so I guess we'd miss out on that too. . .
