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My hot water heater is located in my garage which is the coldest place in the house.

My hot water heater is located in the crawlspace, so not actually in the house at all. It's not as cold as if was sitting out in the open, but not by a lot. Then again, I live in the southeast, so it doesn't generally get so cold as it does up there in the northeast corridor.
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Bitt Faulk