Current state - hate the useless corner cabinet and feel that the range side of the kitchen lacks counter space and cabinet space. Pantry access is awkward.

Plan:

Renderings (Please note this is for layout only - not finishes)

Have you hired a kitchen designer?

Crisscrossing the aisle in a galley kitchen is inefficient and dangerous. The range might be tight placed where the fridge is located currently, but that would be much better work flow.

Youre still looking at a 25-40K expense to do what you’re talking about here, even with DIY effort. All new floors, a massive amount of electrical needs, all new cabinets and counters. Ventilation. Plumbing. Etc.

you may want to re-consider the peninsula, it is very tight in there, you also do not have enough room for a breakfast bar seating without interfering with your dining room

Islands and peninsulas are nice, but sometimes they do not work, if you absolutely have to have one you should reduce the width, as for the budget you are looking to at least $25.K with stock cabinets and mid level appliances

The layout might not be ideal, but I could certainly make it work. I agree the peninsula will make both the kitchen and dining area feel awfully cramped. I'd eliminate it from the plan. Good luck with your project.

I think I might need to share a bit more about my situation and plan.

I had a great life plan until my marriage of 30 years failed. Suddenly I had 1/2 the money I thought I would have at this stage of my life. Then, while in escrow, I had another life changing event - major surgery with a cancer diagnosis. Long recovery, ongoing expenses, hiring out things I normally would do for myself, but couldn't do at the time.

I plan on retiring in 10 years (age 67). If I spend more than what is left of my budget I will have to delay retirement or risk not having enough to retire comfortably.

So my budget for the kitchen is set in stone ($20 k max), not including the floor. The flooring is being replaced from end to end in my home and is in a separate budget.

The current plan is to keep as much of the existing cabinetry as possible. The left side will have original cabinets from the peninsula to the end of the sink. The useless corner cabinet and the small cabinet between the sink and the corner cabinet will be replaced by the two cabinets that are on either side of the stove.

They just happen to be the exact same size as the space I needed to fill.

The right range side of the kitchen will need new cabinets. I found that Sherrs can make cabinet doors that match my current cabinets and they are not terribly expensive. ($30 sf),

Challenge with the cabinets is matching the stain between the old and the new. Thought I would order a sample and play with it.

I agree that the peninsula encroaches a bit to far into the already small dining room, but so far it has not been a problem. The peninsula works really well for baking, which I love to do and most of the time it is just me sitting at the table. I may have one or two friends come over for dinner one or two nights a week, but I have only had one time in the past year and a half where there were a total of 4 people sitting at my table at one time, so I am okay keeping the peninsula as is.