are there bedrooms down there as well? if someone will be using the bedroom in the basement, then they will want a decent bathroom to go with it. 6 inches really isn't worth the hassle of taking down or moving a wall. A foot, maybe, 6" ? no. once you put on the wall or tile, you've got maybe 4" total. Maximize the space by choosing a good vanity w/storage, and possibly building a niche into the wall for additional storage. (use the area between the studs as a built in cabinet) using a prefab shower is fine, but pick a decent one as opposed to those flimsy acrylic pieces. you don't say want the resale value is, so i have no way of knowing how much you should invest. You say you bought mid-range, but I don't know what else you need to redo. anything under a 15% profit really isn't worth it. as for fitting it over the existing drains, usually you will need the new drain cover. if the drain needs to come up, there are extensions. I would advise your husband to do some research on how to fit those into an existing bathroom. If he's handy and can build his own slope, mortar bed and waterproof the shower, then he could prob tile it himself. Just depends on how much work you want to do and what the return is on what you choose. by the looks of what you have there currently, you may have some water damage underneath all the mess. Tear out what you can and then determine what you need to do.

May the gods of unneeded renovations divert the fleas of a thousand camel to infest your armpits. Give the bathroom a really good cleaning, reseal all the grout, and otherwise leave the d**n thing alone. It's just fine the way it is. Take the large amount of money I just saved you and divide into two equal piles. Send one pile to me.

It sounds like you need to start looking for some general contractors to look at and bid the job for you. They should be able to let you know what can be done and give you a general idea of cost. Someone will need to evaluate structural issues (moving walls, supporting bathtubs, etc) and routing of plumbing. I do think it's nice to have at least one bath tub in the house. Whether it's for bathing kids or dogs or soaking something, it is nice to have. I do think a really small place can sometimes get away without (such as a 2 bedroom home). Keep in mind that a bathroom without a tub is a 3/4 bath. A bathroom with a tub and shower is a full bath. That can matter for resale and value.

@eld616, the main space is stil a work in progress. The construction is completed and all the finish work too. But we don’t have all the furniture yet, ugly paper blackout shades, only half of the walls have pictures on them. I’ll post when we get it all together.