Eagle,You have narrowed it down with the hot water only discovery.Very unlikely that "sand" is coming into into your water supply with this scenario.I would definately inspect your hot water device.As far as tankless heaters go,is yours a stand alone tankless or is it part of your furnace?If the latter,mine failed two years ago but I did not have the sediment issue you have.My boiler makes hot water for the hydronic baseboard(forced hot water).My coil for the domestic hot water is immersed in the boiler water.I figured out mine failed when my boiler water pressure kept getting too high and was being released through the relief valve overflow.The reason is the domestic water was leaking into the boiler water through a hole in the coil because the domestic water pressure was much higher(50 lbs) than the boiler needs(15 lbs) and the relief valve would open at about 25 lbs.Changing the coil was very simple and inexpensive to do myself.I think about $50-70.It might be worth changing the coil if this is your type of system. SS
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SIKSUKR
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