75 gallon vs. tankless water heater

which is the better option? a 75 gallon water heater (natural gas) or a tankless water heater? 

this is for a two unit apartment victorian in san francisco and would like to consolidate two 40 gallon water heaters to save space.  6 people plus visitors live in the two flats; plus two bathrooms, two dishwashers, two washing machines and two dryers.

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