What is the question? Do you have a budget in mind?

If your budget isn't big, don't bother changing the paneling. It's so interesting. Lack of function though, that's a biggy. you definitely need more storage.

It's very hard to tell from your pictures, but I take it the bathroom is the corner of the laundry room/mudroom (?). What is behind those small paneled pine doors?

I'm going to assume you have no garage, hence no other place to store the 2 strollers.

A. Shelving. If it were me, I'd pay someone to come in, and build some shelving on the side of that vent thing in the first picture, to get all of that stuff up off the floor. I'd have the person build shelves under and above the slanted pipe in the 3rd picture.

and, the storage cabinet next to the beautiful blue W/D could be maximized upwards. In fact, you could use a cabinet above the W/D (can't imagine anything in those existing pine doors above the w/d could be functionally used for anything....)

the ladder simply has to be stored outside somewhere. perhaps you can get some kind of a shed outside to supplement for storage for seldom-used items.

So, lots of cabinets with doors--to hide clutter.

B. Bathroom area: I would purchase a newer, nicer narrow sink cabinet, with storage for TP, extra soap.

I would take down the shelf next to the toilet, it looks cluttered and like something's going to fall on someone sitting down.

If everything can be put away tidily to clear the floor, you are going to be able to breathe in there, and function! Save a bigger remodel for another day, because it's going to cost a LOT of $$$ to move anything like those ducts/vents/heater system--whatever all that stuff is. And with a bunch of little kids, the extra little bathroom probably comes in really handy.

Mrs. S, if I understood correctly, the fuse box is behind the doors over the w/d. Looks quite shallow but with enough depth to conceal the box and wiring.

Thanks for info. Clear out absolutely everything that doesn't belong there, including the stuff that just got moved there. Put in new sheet vinyl in a light color over the existing tiles (they should be tested for asbestos, also test the mastic). Replace the grimy old laundry sink with a smaller one that leaves elbow room around the toilet. Replace the toilet seat. Put the cleaning chemicals in a cupboard or up on a shelf away from the toilet.

As for a door, we'd need to see a floor plan and more photos to see where one could be added.

It seems unlikely that anyone would have time to iron in the basement while kids are running around upstairs. If you iron while watching kids, you may want to move the ironing equipment upstairs to the master bedroom closet or to the family room closet. Many people fold their laundry in the living room or family room, not next to the washer and dryer. See what works for your family.

As long as the tiles aren't crumbling there really isn't need to worry about asbestos. The area of concern is with friable material, like removing old ceiling tiles where asbestos fibers can become airborne.

I'm willing to bet that toilet isn't legal.

I like the paneling

Great advice above.

Here is some inspiration to help visualize Your Laundry Utility Room.

Laundry Room · More Info

House on Kings · More Info

You have a good plan. I would keep all the existing hardware as it will look great when the pine is whitewashed. I would have a new door for the toilet constructed to match existing.

It looks to me as if some kind of "wall" was put in to enclose the toilet but it's in the middle of the window??

What I would do is clean it out and remove the walls that were put up to enclose the toilet. I assume that there's some kind of door somewhere in the room? So when you need to pee, just close the laundry room door....I mean it's not a "public" room where everyone has to watch you, right?

The toilet and sink (YES get a better sink and vanity but make it the same deep utility type sink with doors on the bottom to hide some of the stuff) are super useful for men and filthy kids and whatnot.

Get rid of the walls/detritus of daily living and take another photo so we can help with any cabinets/storage.

It can be lighter and brighter and cleaner, but let it be what it is which is a useful space.

ETA: I would get rid of that cabinet and put a folding shelf under the window....

Looking forward to seeing new pix.

Yeh, tight budget, 4 kids, one bathroom--changes things. Darned Real World intruding into our dreams.

Here are a couple of preliminary thoughts to think about...

How about moving the laundry sink to the area under the window to the left of the W/D? Not as impossible & expensive as it seems because the water and drain lines can be extended fairly easily and would be concealed behind W/D. Washer could then drain into a standpipe connection in the extended drain from the utility sink to the existing connection (where the utility sink currently is.)

If that is possible, it would give you some breathing space around the toilet. A new toilet designed to fit in corners might be a good option. And, if you can nudge the W/D a few inches to the left, you could get rid of the little wall that is obstructing the window. Might be room for a small handwashing sink next to the toilet.

I know it sounds odd--but think about enclosing the toilet area with some of those public restroom type panels. Pros are that panels save space and are easy clean. Not altogether out of place given that, with the furnace, etc., it's a utility area anyway.

Second thoughts about covering floor with sheet vinyl; pending better pix, am thinking this would be a difficult install. Tile or vinyl planks would be easier, I'm thinking. Concrete look vinyl planks are available & would look terrific with white-washed walls and the blue appliances.

Don't worry about the mess at all!!! This is how most of us have at least a part of our house....

Good news that you're dealing with shellac instead of varnish or poly.

I was thinking that the caulked shut exterior door was on the end wall but, after your post, now see what I was thinking was a window is a door. After taking another look at the photos, I see that I should have realized it was door.

Caution about the denatured alcohol fumes. I've read that you can end up with a bad hangover/ headache. So take breaks, get lots of fresh air and don't drive! Good news is that the fumes dissipate quickly so no long lingering odor/ hazard.

What do you plan on doing? I would just paint it white....In truth, I wouldn't have patience for that so kudos...

Good update, thanks. If you have new photos that show all four (three?) walls, that'd be nice to see, now that the redo is in progress.

following

Keep sanding! It looks great. Then wipe it all down with tack cloth to remove all the grit. When you go to whitewash it you'll get a great result. Here's one nice example: https://www.remodelaholic.com/how-to-whitewash-plank-wall-ceiling/

Do you happen to have any updated progress pictures?? I know this is a few years old but am going through the same process :)