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We recommend installing a high efficiency furnace because economically over the life of the furnace it will save you money and will give you more comfort. 80 % efficient furnaces are still available and requested by a few of our customers. Here's an example of such installation.
In this particular case the furnace needed a Propane Conversion Kit. Also, the old picture shows how the water used to drain on the floor but there's no drain nearby. During installation we put a condensate pump that allows the water to go where a drain is available and reduce humidity in the basement.
In some instances, a power vented water heater is the right solution for your home. Here's an example of such a solution.