close up play room closet behind, utility room. open it like this to make laundry closet at the back door. Enclose the water heater. use space where w/d are now at right of door as a little built in seat for bags & coat hooks over it.
Use Ikea Knuff magazine files as under sink storage holders. Screw a magazine file holder to the inside of kitchen cupboards. Add space to store more bulky items like chopping boards, cleaning products etc.