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Thank all of you for your helpful replies! Yes, I understand now why metal is disallowed. I had thought that the acidic moisture is what the condensation drain is for (I'm just talking about condensing units here), but apparently the exhaust is indeed still moist and acidic (plus it's indeed...

I am in a 35 year old condo on the ground floor of a 2-1/2 story building, and would love to replace my aging 40gal. with a natural gas tank-less. I'm working under some constraints, primarily that of the venting which can't realistically be altered. The current heater uses a 3" vent piped...