close up play room closet behind, utility room. open it like this to make laundry closet at the back door. Enclose the water heater. use space where w/d are now at right of door as a little built in seat for bags & coat hooks over it.
grey & white Interesting that the crown molding is painted gray to blend with the upper portion of the wall. This is a great Tim to avoid "boxing" a room by painting upper and lower trim. Either continue ceiling color onto upper, or wall, as here.