Floor plan dilemma with my flip

[Nas Zidane]

Hello everybody,

I'm working on a 2 bedroom 1 bath 1945 built Texas house , when I bought it I had the intention of changing the layout since it’s  in my opinion has a very big design issue with a lot of wasted living space due to the bathroom being between  the living room and kitchen, leaving a very small living room, what I currently want to do is convert the interior to open floor design and convert what is labeled as FAMILY in the picture below to a 3rd bedroom and a bath, I'm  trying to find the best design with least amount of construction since my budget is not very high, also I'm  trying to stay within the standards to be able to sell the house with no issues, I  started working with a Draftsman which he provided few suggested layouts but each one of them has it’s negatives which is why I’m asking for your great advice on which layout to go with and what to change before starting the actual work, below are the existing and suggested layouts, please share your opinions and ideas.

The house is supposed to be 1100 SQ-FT not including the Family room

I added the survey too for more clarity

Below are the suggested layouts and I'm sharing my opinion on each one of them

This one looks goo except the things I'm not sure about is it's okay not to have an entry way ? as you can see you get into the living room right after you open the door, and is it a problem for the bedroom to be kind of close to the kitchen ? Would you keep the kitchen this way or kind of push it to a corner  ? I guess my most concern here is it Okay for the bedroom door to be 2-3 feet away from the Kitchen area or not 

This one is my other favorite, but isn't an issue to have a wall right when you enter the house ? and have to go to the right to enter the house, an option that I thought of here is to have the door turned to the right, but if I do that, the entry would be directly to the kitchen and not the living room and again no entryway

Please share your ideas and expertise, I'm really not sure what to do here and what is standard or not in the Texas market, I don't want to end up with a bad layout 

[Eric Teran]

I decided to spend an hour or two on your plan and came up with a new more cost-effective version. I know you want to make it amazing to make as much money as possible while spending as little as you can. As you will see I think you basically just have to flip the existing bathroom by the kitchen to the other side of the living room and add the master bathroom. Thew new laundry room is in the corridor and if you stack them you can put the water heater in there as well. Another option is to do a tankless water heater for you to save space. You can even put those in the attic (if you have one). Each bedroom has at least 10' of closet space (brown rectangles in the space) and the smallest bedroom in the middle is 11'-0" x 10'-0".  With this layout, you keep the public and private spaces separate. It is never fun to cross a living room to go take a shower. 

The dining room is a little bit narrow but there is enough space for a house this size. Right now I have a 30" island with an area for bar stools so that can be shortened as well. Depending on your windows you will get a lot of natural light into this open space floor plan. Since it is open it will feel a lot bigger as well. Good luck!