TV nook renovation idea help

[Nancy Wang]

I need brain storm on what to do with the TV nook on the picture. It is too small per today's TV size standards. On its right it is water tank so I cannot enlarge the TV nook. Behind the wall it is garage.

I came up with these ideas:

1. Drywall up this place so there is a whole flat wall to the right side of the fire place. There will be dead space unusable, unless I remove the back wall to open to the  the  garage to add a little to garage space, which does not add much value to the house;
2. Add a sliding farm door  to cover it and convert the nook into a closet. In front of the door TV set can be set on a console. Good thing is that we still have the space usable, but you would slide a door behind a TV set - awkward? 
3. add a regular door to the nook. Reface the fireplace and put the TV up above the fire place. This will cost more and this is a rental property, the TV wiring / holes on the walls etc will be new headaches.

What do you guys do with your outdated TV nook? I have another small niche in the master bedroom, and a big one in upstairs game room. For the game room, I will just add a door to change it to a closet. In the master bedroom it is just a small niche on the wall I will just leave it as decoration. But this one on the picture, I need to find a place for the TV to go. Please put your designer hat on helping me out! Thanks!