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.
Garage Storage Life Hack: Use a pallet! Pick one up that's being thrown out from behind a store, screw it into studs, and done! 15 minute project for garden tool organization! Sand and paint if you want to get cute.