4'x7' is a waste of space when it comes to a closet. It's not big enough for hanging except on one wall and a bit of the small wall. You'll get better storage in less space with a simple reach in closet with organizers. The bath itself also needs to increase in size if you want a soaker tub and a shower. A soaker tub isn't designed to work with a shower. You need a shallower tub with an integral tile flange to work with a tub/shower situation. A deep soaker tub will be a PIA to step into to use as a shower, and you'll have water infiltration issues if you try to use it as a shower as well. Also, most 4 bedroom houses would want to have 3 bathrooms. You may want to rethink your wants and needs and the small size of the space you are working with. One needs to reduce, or the other needs to enlarge. Since you say the budget is small, and this will be an expensive project, I'd suggest reducing some of your wants, and eliminating one of the bedrooms to better utilize the existing space split between the others. A 3/2 is a common configuration, and would give you more space to work with for the design. Remodels like this are costly because of working within the constraints of the old footprint and accessing the major systems. Also, integrating the old and new isn't always successful. It's just easier to do plumbing and electrical and HVAC (all of the expensive stuff) when the walls are completely open and you don't have to fight the old stuff into submission. It's one of the reasons teardowns of older homes in older neighborhoods became popular. It's less money, and you end up with more house that has more modern proportions and amenities.

"I'm a little confused about your wife. Are you saying that you would prefer #2 because the shower is larger but your wife would prefer #1 because the open space is to the side?" No worries, at times she confuses me too. ; ) I was going to expand on that but didn't. As a single-issue item, I'd prefer the floor layout of #2 because you get a larger shower and you really don't lose floor functionality elsewhere. As a single issue item, my wife would prefer the tub orientation in #1. Normally we'd balance out using the larger shower once or twice a day versus perhaps only using the tub once a week or so. She'd go for "the greater good" and choose the larger shower of #2 over the tub orientation of #1. HOWEVER...your "small" shower is still pretty darn large. Your floor plan shows the small shower still having roughly 5' of open floor length. Plus a bench on the end. So it'll be plenty spacious and airy. "And yet another issue for #2 (did you mean #1?) and #3 is that if two people are using the tub, if only the far person wants to get out they kind of have to climb over the other person." I did consider ingress/egress regarding someone having to climb over another. But because of the size of your tub, with #1/#3, it'd be pretty easy for the blocker to pull their legs in or rotate 90-degrees. Or just be climbed upon. Even with tub orientations #2 and #4, it's not likely that someone is going to step over their headrest to exit the tub. They'll likely shuffle into the foot space of the other bather and exit there where there is no head rest barrier. So with either orientation, I'd think someone will step over or around someone else. "#1 seems to be the only layout that doesn't have any logistical problems but it makes for a smaller shower." I'm really glad you wrote that. Because on the whole, your smaller shower is still plenty large. At least to me. Even with the bench you're looking at roughly 5' of open floor, which I think is fine. I it was my decision, because the small shower is still pretty large, I'd give my wife the tub orientation that she wants with #1. If you plan on watching the TV on the wall while in the tub, I'd mount it on an articulating bracket that can hinge out from the wall. With #1 you'd have to turn your head about 45-degrees to watch. With #2, if the TV can rotate out 90-degrees from the wall, you could watch the screen straight-on.

I like the larger bathroom, but I think the doors conflict and it is nice to have them open into the closet. I'd do a good pocket door into the bathroom to avoid more conflict although it could open against the wall next to the sink. You do loose more closet storage, but corners aren't all that valuable in a closet. You could fit a lot of clothes in there by double hanging rods. That would save some money over the Pax system. Plus your closet now seems more separate from the bathroom by extending the wall. Here is another idea for the main bath. My daughter has stacked washer and dryer and is short, but uses the arrangement well. You have plenty of room in front of the W/D to get clothes in and out. The toilet is off to the side. The vanity could be 72 inches with 2 sinks. The bonus is the door would open up against the tub and the room would feel more open. The laundry would be easily accessible without the bathroom door being in the way. Folding laundry in the laundry room is overrated. I had a nice space for folding laundry in our 1 st house with a window to look out. I usually took the laundry to the TV area and sat down on the floor to fold.

for the size room you have, 25K is barely enough. To stretch that budget you HAVE to DIY some things. Demo will prob save you a few thousand. painting will save you a bit more. Sourcing all your tiles and products and looking for bargains, also saves you. I did this for my own bathroom and saved tens of thousands. But I also played GC for mine. I have a lot of pics with diff ideas. See what you think imagine the tub situated under your window since this window is on the other wall. do a longer vanity, even if a portion of it hits under the window. people like countertop space. Or, between the window and the vanity do an open cubby shelving like shown here, or the next one. unless you have a spot next to your shower for a storage area? then you wouldn't need the tower on the vanity BTW, I love all of these tile/shower designs. this is a 60" vanity w/double sinks, tile wainscot behind the tub. I think you have plenty of room to do a longer vanity w/the free tub in the corner. Ignore the style on this one, but you mentioned a tower. here's one w/single sink and tub under the window. Are you on a raised foundation? becuase if there was someway to move that toilet, it would really help the layout. this bathroom design is pretty close to your layout. you have a longer space on that back wall so your toilet would be between tub/shower. I really like this tile You could basically copy this herringbone on the floor and up the wall, but use larger tiles. (like 4x16 ) Or, you could do a larger hex tile like this black one (or gray or white) and instead of tiling around the tub, do a wainscot/board and batten, like you see here behind this tub. To save money, learn how to DIY this. It's not that difficult. plenty of online tutorials. this is a board/batten. really amps up your space, but would cost you 1-2K to have this done. materials for this can be bought for a few hundred. Do it yourselves (it's mainly math) and save that money for something else. what about something like this? see the board and batten wrapped around the vanity wall to the tub wall? notice the wall mount faucet for the tub? this is a nice, classic look. Then you'd have your toilet, the shower on the other wall. The tile in the shower looks like a 4x16 Shiplap w/a vinyl MDF for damp areas is another option I love this soft blue roman shade too. In this viewpoint, you have the tub with nothing on the wall and a freestanding faucet. Prob your cheaper option. (I really like the first picture I posted. I love the design, the tile work and the items used. Modern Boho. instead of the wainscot , use the white subway tile. However, a tile wainscot will cost more money because of the labor involved) trying to photoshop this tub but the view/angle in the photo is from the other direction. see how it's simple tub w/the wall mount faucet? what if you did that w/it placed on the back wall like shown here in the pic? (look at this view as if you're staning in front of your window. Like the one above w/the Blue vanity. you may have to rotate the one end under the window in order to get the toilet to fit in there. just depends on the size tub you got. you could do a little makeup spot if that countertop takes it under the window. I did find one picture that is almost identical to your layout. (minus the toilet and an extra window) This is a small freestanding tub and would totally work for your room. You could rotate towards the back wall so that you have a longer space on the vanity wall. here's a shower tile option. white subway w/a long niche. source out the tile yourself by shopping around, looking online/craigslist for leftovers you can use. If you buy the shower faucets/hardware individually (example, Kohler Purist on Amazon can save you money if you buy single items at a time) you could save some money. when buying your shower valve, make sure to get it for your specific model shwerhead. if you want the handheld, see if you get a valve that controls both.