Because the old 'sheet' flooring (lino or vinyl) is damaged, you may have to remove it and that will add cost. It is possible for a flooring professional to "patch" the damaged areas in the floor and get it even with the old floor. They can then go ahead and lay new lino or vinyl (probably sheet product once again) over top. Many companies allow this to happen. It will be slightly cheaper than removing all the old floor and then installing new flooring.

It is also possible to float a floor over this old sheet flooring (again with the patch) to get a different look/type of floor. It will sit higher than the wood floor but that probably can't be helped. Certain companies allow laminates to go over this type of flooring.

I guess it all depends on what you are going to do with the old floor and how much budget you are looking at working with. I can get you a floating cork floor for $2.29/sf + shipping and it would probably sit right on top of that old floor (again with patching compound in the holes).

Then again, an $0.89/sf laminate will do the same thing.

I would tear up the floor and see what you've got. It appears to be an older home- you may find hardwood! If so, restore and go with a colorful countertop. If not, linoleum is an inexpensive choice. Ikea has wood counters at an extremely low price. Agree that you shouldn't paint the countertop. The one in place now appears to be in decent condition if the project needs to wait.

yes, we intend to paint the bottom of the island with a butcher block top from Ikea. I thought wood plank LVT would not look good next to the real hardwoods? I like them but thought it would clash. I was looking at this yesterday: http://www.homedepot.com/p/TrafficMASTER-Ceramica-12-in-x-24-in-Coastal-Grey-Resilient-Vinyl-Tile-Flooring-30-sq-ft-case-24716/202191244?N=5yc1vZapwrZdfoZdfzZdg1Zdg2Zdg3ZdisZbwo5o#customer_reviews

So inexpensive! We have not gotten under the vinyl yet. If there's wood I'll be thrilled. We close today! Thanks for all the feedback!