Tankless water heaters without a recirculating pump will have surges of hot water, warm water, then again hot water in various surges until the water in the pipes heats to a specific temperature. The closer you are to the TWH, the surges in temperature would be more noticable. By adding pre-warmed water before the TWH, the surges would be less noticeable, and may eliminate them completely.
I believe your plumber is on the right track, and it should solve your problem. Please let us all know the outcome after the installation of the water tank.
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