For storage I purchased a upper kitchen cabinet single door)and installed it above toilet. It's sticks out further than a typical above the toilet cabinet but has much more storage than those shallow above the toilet cabinets.

I painted it white. It did seem oversized at first but after a while that feeling subsided. I did purchase mine at a discount since it was a closeout of some that were discontinued so that was a plus too.

You’re just asking for trouble if you try DIY. To do this project correctly you’re going to need at a minimum:

• Bath designer
• Engineer (to evaluate if the structure is sufficient to support the toilet, wouldn’t want that to fail during your morning constitutional)
• General Contractor
• Laborer for demo and cleanup (GC should provide)
• Carpenter
• Plumber
• Electrician
• Dry wall guy (or gal)
• Flooring guy (or gal)
• Painter
• HVAC tech for the exhaust fan
• Locksmith for the door knob
• Banker for the loan
• And a lawyer for all the paperwork

Figure $25,000 as a rough budget depending on the fixtures you choose.

On a more serious note. If the existing tile (it looks like self-stick 12”x12”) is well adhered you could go over it with LVT but in doing so makes the floor thicker which could require under cutting of the door jambs/trim and likely a different transition. I might take a look and see how easy those tiles are to pop.

As someone mentioned if that’s some kind of textured board on the walls, removing it won’t be easy. Unless you really dislike it, I might suggest just painting it. Want to remove it, it might be easier just to cut directly above it, remove it and the drywall behind, and then re-drywall. Another option, if you like the look, is remove the old stuff and then go over it with wainscoat (or something) that’s slightly higher than the old. That eliminates the need to feather in new drywall.

If you end up removing the wall trim, you could get a bigger mirror. I think it would help to give your bathroom an updated look by getting a new mirror that was a little bit bigger and some new vanity lights. That, along with a new paint color, is always an easy to give your bathroom a fresh look!

If you are trying to hide the tile look on the wall, spackle is your friend. Use it to fill in the indents, smooth it out the best you can, then sand it flat. You can paint right over it.

Also, don’t mess with that tile unless you’re sure it isn’t asbestos. Asbestos tile is fine as long as it isn’t broken. Once you start tearing it up it can release particles into the air. You can tile or floor right over it. I would at least pull out the quarter rounds before placing any flooring. If you are careful enough, and it co-operates, you might be able to reuse it. Otherwise, quarter rounds are pretty cheap and easy to cut to size. Baseboards cost more and are a little harder if you don’t have experience cutting them. In a small bathroom the cost isn’t too high. If you decide to do some kind of flooring, look at diy network for help.

For storage, I would suggest looking into the toilets built ones. I believe they sell them at target, they are easy to put together and go around your toilet to save some space. I have looked on Amazon before too if you were looking for something cuter. Also, I would look into wall shelves. Maybe even taking that mirror down, and put one with storage behind the glass.

Google small bath design to find some ideas. I would probably also google New York small bathrooms - they will have some cool ideas. Also check out the Moen website - they have some ideas.