Joe, You're not even close. I used the free sizing software at Bradfordwhite.com to determine that you will need approx 100 gallons of storage and, even more important, 200,000 BTU input for a fast recovery. I'm surprised that your tenants are not complaining with the minimal heater that you have now.
If you're heating water for four apartments, go ahead and place a separate water heater in each apartment and let your tenants pay to heat their water.
Personally, I think I would size up one of those on-demand systems and have the manufacturer size the thing for me. I've installed on-demand systems in restaurants that need 180-degree water (and lots of it) for their dishwashers. On-demand units are a great space-saver and they also save energy (saves ya money). The lady who owns the restaurant with the on-demand unit told me that her energy savings were significant enough to pay for the unit and the installation costs in less than three years.
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