Propane is better because it's cheaper, burns cleaner, heats more evenly and effectively, and will end up saving you money in the long run because gas is cheaper than electric.
I would get an electric water heater so that you will not have the extra expense of buying propane. You are already getting an electric bill you do not need another.
Everyone on Internet is saying propane is cheaper, has anyone done the math? Eight years ago propane was $1/gallon, now we are getting $3/gallon delivered. At this rate it is either same or slightly expensive then electric.
While any sort of gas, whether it is natural gas or propane, tends to be more efficient than electricity, electric water heaters are considerably safer than propane and require less effort to install and maintain.
