A conventional gas storage tank vents by natural draft. Hot flue gas is buoyant, it rises up a galvanized B-vent, and the loose crimped joints do not matter because the flue is under slight negative pressure the whole way. A tankless water heater does not work like that. It has a blower, and it pushes exhaust out of the building under positive pressure. Every joint in that vent is now a potential leak path for combustion products into occupied space. This is why a tank flue can never be reused for a tankless unit, and it is the defect we find most often on unpermitted installs in older Frisco housing stock.
Which sealed system you need depends on how much heat the unit pulls out of the exhaust. A non-condensing unit leaves flue gas hot, which puts it in Category III: positive pressure, non-condensing. That requires listed stainless, commonly AL29-4C, with gasketed joints and locking bands. It costs several times what plastic pipe costs per foot, but it needs no condensate drain and it can often follow an existing interior chase. A condensing unit cools the flue gas enough that the water vapor in it condenses, which puts it in Category IV: positive pressure, condensing. Now the vent is cheap plastic, but it is carrying liquid condensate with a pH near 3, so it has to slope back toward the unit and the unit has to drain it through a neutralizer.
Termination is where inspections are won or lost. Manufacturer instructions govern and are frequently stricter than code, but the general framework is consistent: keep the terminal at least a foot above finished grade, four feet horizontally from and below any door, window or gravity air inlet and at least a foot above one, three feet above any forced air intake within ten feet, and four feet horizontally from a gas meter or regulator. Manufacturers usually add a clearance below soffits and overhangs, because a vent tucked under a vented soffit will pull its own exhaust back into the combustion air intake. On the narrow side yards common in newer Frisco developments off the Dallas North Tollway, finding a terminal location that satisfies all of it simultaneously is genuinely the hard part of the job.
The last thing that catches people is that published vent limits are equivalent length, not tape-measure length. A 90 degree elbow typically counts as several feet of straight pipe, and a route through joists with six turns can quietly exceed the limit while looking short. Exceeding it does not usually fail immediately. It shows up as intermittent air pressure switch faults on cold windy mornings, which is a miserable thing to diagnose after the fact. We compute equivalent length with the fitting penalties included and upsize the diameter or shorten the route before the pipe goes in.