If you are installing new tankless in place of 40 gallon gas water heater, then you CANNOT use same vent pipe.
You must use larger diameter pipe that is specified by instruction sheet, and the pipe must be approved plastic or stainless steel to avoid corrosion.
The vent pipe must also have a condensate trap to catch acidic water that drips back down the vent pipe.
The reason is that tankless burn more gas than regular tank-type heater... because tankless must raise temperature quickly as water passes in a pipe.
http://waterheatertimer.org/Troubleshoot-Rheem-Tankless-water-heater.html
Gene
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