Thanks so much for all this fabulous information!!!

I am looking into a tankless water heater for our townhome. We currently have a 40 gallon tank in the center of our townhome and it uses gas. There is no electric outlet in the water heater closet. The door on the closet has metal mesh at the top and at the bottom for ventilation. This closet is literally no larger than the tank, but the tank and the closet sit up higher than the regular floor height. Also, the side of this closet shares a wall with the interior closet that houses our furnace (back wall of furnace closet). The furnace closet is also raised with a crawl space underneath that is easily accessible (removable panel from hallway and space goes under both the furnace and water heater). The furnace closet has an electrical outlet.
I know someone in our townhomes with a tankless water heater and they love it! However, their water heater closet is on the outside of their townhome, so ventilation was not an issue for them. They hired someone to do the work and they like the tankless unit, but would not recommend the person who did the installation. They felt the ventilation for our unit (center of townhome, nowhere near an outside wall) would prove to be too costly.
My father is a retired electrician and lives nearby. He would be willing to do the labor for us, at least what he is skilled to do, which so far has been anything I have asked (door-to-archway, replace drywall, replace baseboards, install awning, install ceiling fan, replace garbage disposal, fix dryer vent in wall, etc...we've lived here 8 years and he has helped us with labor a lot, even though he has only lived nearby for just under two years). I haven't mentioned this particular project yet, though... Every time it comes up, he is out of town. LOL
So...got any wisdom to share regarding ventilation issues? How about gas tankless unit without an electrical outlet nearby? I read somewhere even the gas models require electricity.
I also would appreciate folks naming some brand names to get me started on my research.
Thanks!