I posted this in the Bathrooms forum as well, but wanted to reach out to the remodeling experts here, too.

We are preparing to convert the laundry room in our 1912 California bungalow into a second bath. (The existing bath is also in need of a gut remodel, but if we started there, we'd be without a functioning bathroom for weeks.) Working with our architect and contractor, we have come up with two options. Which one gives us the most bang for our buck?

Option 1: Put a mini-addition on the laundry room and break through a storage closet to create a master suite with the adjacent bedroom. The full bath (tub/shower combo, double vanity, toilet) would be roughly 5x11. This is at the tippy top of our budget. Existing bath remodel would be put off at least a year, probably two.

Option 2: Remain within the existing footprint to create a tiny 3/4 guest bath (roughly 5x7) off the kitchen. This is about half the cost of Option 1 and would leave money in the budget to remodel the existing hall bath (which would then function as the master bath) and/or add storage solutions elsewhere in the house to make up for storage lost to the laundry conversion.

We are really torn. This is our first and not-forever home, but we do plan to stay for several more years. Is the added resale value of a master suite worth the budgetary discomfort? Is it better to get two new baths for the price of one?

I posted this in the Bathrooms forum as well, but wanted to reach out to the remodeling experts here, too. Thanks! Your insights and opinions are appreciated.