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Water Heater Elimination.

My electric water heater hasn't worked in years. I disconnected power to it back then until I had time to look into it. This has not been much of a concern because we still get plenty of hot water after running the engine. The old heater started leaking rusty water last year. Has anyone done, or heard of looping the hoses in order to eliminate the water heater, but still get hot water from the engine? Would this work?

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