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You're asking two questions: is it safe, and is it practical.
Safe? Not sure.
Practical? No.
Your existing water heater works, and supplies water to the whole house?
Does the new heater supply the same amount of water, or will it not? The existing one can be moved with far less expense and hassle than a new, different type of water heater that requires a pretty good sized chimney to exhaust the heat when it fires up. It's not like you're adding a water heater to a remote guest house or something like that. Why would someone ever want to move an AC, and not leave it in place, just move the ducts?
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