re: No hot water with a tankless water heater outside.

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What is the rational for having a water heater outside?

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Lot of tankless heaters are mounted outside because of the way they are vented. Mine is outside mounted between the studs. Got down to 8° last night no problem. I have a heat strip wrapped around the inlet pipe inside the unit. In my area to meet code it has to have a 110 outlet inside the unit to plug up heat strips or a heat bulb.

To avoid putting it in the attic. Tankless heaters are almost all run on gas. Some people like mounting them on a exterior wall. It’s not something I’d do bc water heaters should be centrally locates and that is often an issue on exterior mounts. Both options have drawbacks. Attic mounts can leak and cause damage in the home.