I'm in sort-of a similar situation and here's how I'm planning to tackle it. My SMB original water heater is 15 years old, rarely used, is still functional - but rusting. So rather than replacing, I'm planning to remove it altogether and gain some storage space under the sink. For occasional hot water needs I'll use a butane stove. The stove can also cook, is cheaper, less complex and less maintenance. The money saved by not doing the water heater, could go towards installing ( which I did ) an Espar D2 cabin heater.
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2001 EB-350 7.3L SMB/PH Quadvan 4x4 285x70x17 orig. owner.
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