The first time I ran into one of the "demand" heaters was in a hotel in Phuket, Thailand.
This jobbee ran on natural gas...which was OK except the gas line to the heater was a
length of clear plastic hose similar to what we rejected in the discussion of bike fuel hoses.
And the ends were a slip on with no clamp!
It didn't work very well, but it was so hot there you didn't need much hot water, fortunately.
Jim