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Having the right size pipe ensures proper drainage and helps protect against clogs and other plumbing problems. A pipe that's too small will take longer to drain, which can result in backups. And solids can build up in pipes that are too large. Choosing a pipe with the appropriate volume also means it will be able to handle water pressure, which is the force behind the water.

Costs depend on furnace size, ductwork modifications, labor, and efficiency ratings of the chosen system.

The right way to vent a gas water heater is to have a pipe directly upward or slopes upward out of the house. Because hot air naturally rises, this type of venting will efficiently ensure that all gas moves out of the house. Your system may rely on fans or blowers as well.

You can and should vent the gas from your hot water heater to the outside of your home. Traditionally, these gases were vented back to other gas appliances, like stoves or furnaces, but many jurisdictions have outlawed this practice due to the risks it provides. 

Most water heaters today use atmospheric venting that exhausts the gas out of the home through a pipe.