What room is the second photo posted? I was reading it as the bathroom, but it doesn't match the diagram. What is the large black rectangle on the drawing, between couch and dining area?

I suspec there's a *Much* better way to arrange the bathroom and kitchen, but need a better understanding.

Second photo is where the bathroom would be going, but would likely move the door from the current location.

Large black rectangle in the diagram is the pillar/post to the left of the love seat.

I’m almost thinking I’d be better off sealing off the the window to the right of the bathroom to allow for a L shaped kitchen.

Any suggestions are appreciated.

Whatever you do, change the swing on the bathroom door.

Move the door to the bedroom so that you enter the bedroom at the bottom of the stairs. Then, place the bath and closet where you have the bedroom closet AND the kitchen, placing the closet where you have it and the bath in the area where the window is located. Move the kitchen so that it is in the area you have identified as the bathroom and take down the wall between the living area and the kitchen .The kitchen and bath can share a water source on a common wall between them, just to the left of the (now) bathroom window. Does this make sense???

ptreckl's idea might be better, but I'd have to see it sketched out.

That layout could work. While it adds a bit of work and to the budget, I think looking at tearing down some of the walls where the bathroom would be to increase the size probably makes sense.

Did a couple mock ups that take down most of the two walls of the unfinished room in the upper left.

Being a basement, the heights of the windows limit the options a bit.

The kitchen in the upper left gives a little bit better flow to the dining area, but I’ve accepted that any layout is going to be a little awkward.