Hi - We drastically downsized last year knowing that we'd have to do something about our tiny kitchen and lack of storage. Our main floor layout is shown here. There is a very small guest bedroom (12x9'6") right off the LR that I think we should reconfigure to pantry/storage/laundry. As part of the overall remodel, I intend to finish our basement with guest room and bathroom, so we won't need the main floor bedroom (which is super awkward for guests), nor will we need the tub in the bathroom. The area where we live is a lot of retirees and it's not uncommon to have 2 bedroom houses. The master is upstairs.

We are two people and my husband is the primary cook but I'm typically in the kitchen at the same time (not possible in current setup). We live near family and have them over frequently, so being able to have a dining area is important, but it's not used daily. What would you do with this space?

Wall between LR and BR is load bearing. 1 square = 1 foot.