Move HPWH?
I have an 2000sq/ft 80s ranch with a basement. The water heater was once gas, and near the chimney in the spot in red in the basement below. It is now an electric heat pump model, though. The problem with the current setup is the amount of time it takes for hot water to get to most fixtures. The laundry is the only room that gets hot water quickly. The rest of the house is fed from a 3/4" branch that runs across the house straight to the left in this pic and wraps by the stairs for the bathrooms.
It takes 1:20 for the kitchen sink to get hot water, 60+ seconds for either shower to get hot water, and a little longer for each bathroom sink to get it.
The pipes are copper, and are bad shape and the valves in worse shape, so the whole house will be re-plumbed with pex in the next few months. At this time I am thinking of moving the heater to the blue spot. It's closer to the panel (pink) and way closer to the fixtures, but there is no floor drain nearby so a condensate pump will need to send the condensate across the basement to the current floor drain.
The main downside I see to doing this is that tank leaks (over pressure, tank failure, etc.) will have a long path to a drain. Everything else is plusses. If it were your house - would you?