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The pressure drop with the Tagaki K3 is as suggested, due to demanding too much hot water, so to achieve that temp, it has to slow down the flow. However, ALL tankless water heaters, TTBOMK, except the now unavailable Eternal water heaters, inherently drop the water pressure substantially...

Unfortunately Eternal in the USA has closed down completely! The Canadian company cannot sell in the USA. There's a basic design flaw, apparently in the circular heating unit that causes it to crack after repeated cycles. This is, as far as we know, the only Tankless water heater that doesn't...