You'll need to know where your bearing walls are, of course. In my many years of living in New England, I have seen all kinds of cape renovations. I have seen some that are essentially one big open space on the first floor (not cheap to do). Your kitchen deserves to be bigger than the mudroom, for sure.

Anything's possible with the right budget. That said, what will your area support as far as remodeling dollars are concerned?

More information is needed before I feel comfortable making suggestions.

In about a year i plan on remodeling the kitchen and my only cost would be materials and plumbing. That being said I will probably sink somewhere around $10000 into this project with help from people in the trades. Anything is possible really. Just looking for ideas.

The bathroom would be in the way of an open concept design and more costly to relocate.

@Ryguylears, here is a design I drew for your kitchen/mudroom space.
Notes:
You will need to put in a header where the wall is taken out.
This design uses standard size cabinets; in this case they are Merillat, in a pale maple.
Refrigerator, range hood, and dishwasher are GE.
Refrigerator is less than full depth; please be advised that these cost somewhat more than regular depth.
Counter is soapstone, with undermount stainless sink.
Cooktop is 42" Miele; you could use a 36". Double oven is Jenn-Air.
Flooring is large-format Italian ceramic (Emil Ceramica).
Have fun!

Thanks so much for taking the time to do this! It looks great. Going out into the mud room was my original thought. The divider between the kitchen and the mudroom was the original exterior of the house. I may need a bit more structural work than a header but this is definitely something to consider. You are too kind.

No problem, @ryguylears! If you do something similar to this, watch the placement of elements in the entrances to the room (note the clearance dimension in this pic). Keep the last upper cabinet in the run near the doorway back a bit to avoid a crowded feeling when walking past.