Ok, so I’m about a year and a half late on this particular update, since this phase was complete in April of 2016. Apologies, and after this one I’ll be more prompt putting up the update on the new master bath remodel which was done earlier this year as well.
Being a two-family home in its most recent incarnation, the house had a kitchen and small bathroom taking up the entire rear portion of the second floor (with a disused chimney for original first-floor cooking hearth and coal burning running up against the back rear section).
Here are the before pictures:

Facing from the room door towards the back of the house (rear stairs on the left, defunct bathroom on the right).

Facing from the back of the room looking towards the door to the rest of the first floor.
With the help of our fabulous contractors, we completely took the space down to the studs, and removed the portion of the chimney going through this room and protruding through the roof. This was necessary to get us extra space in the area, but also because our homeowners’ insurance had refused to cover us since the chimney above the roof was apparently not sound and in danger of collapse. No big deal.
The grand plan was to convert the adjacent “middle room” on the second floor into a new master bathroom (see future blog entry), so the space formerly taken up by the bathroom, chimney, and pantry here just became more room for standing wardrobes from Ikea (these are what make up for all of the storage in the master bedroom, see pictures below).
Well, it turns out that the gutter system on this section of the house was still original attached wood and not worth saving, and patching the hole in the roof made by removing plumbing vents and a chimney left the roof in a very leaky state, so a full new roof got added onto the cost of the project. Also, we decided to go with foam insulation for the room and to split the baseboard heating into its own separate zone (including a new fancy zone relay system for one of the basement furnaces for adding more zones in the future, which we have done).
Initial-demolition.

Full demolition, new subfloor, window relocation/replacement, foam insulation.
We also ended up replacing all of the windows, moving the center-left one to no longer be directly behind where the bed was going to go, and elongating the rear one to make more light available. It’s amazing how well the foam insulation insulates not only against heat/cold but from sound. We had them insulate between this room and the rest of the house as well, so it is super super quiet. Had we thought ahead we would have also had them put foam insulation/soundproofing under the new floorboards if possible, but it’s still quite an isolated space.
And here is the finished product, with Ikea Pax cabinetry assembled and installed (by us) and completely finished and carpeted (this is the only carpeted room in the house). We think it turned out pretty well. Vaulting the ceiling would have been another option, but by the time the added costs were there with the chimney removal and unexpected new roof, that was pretty much over the line.
Here is the before/after comparison view

And here is the panorama view of the finished product
Stay tuned for the next entry on the massive re-do of the second-floor bathroom and addition of a mega-posh master bathroom also on the second floor. Following that, we’ve also converted the remaining half of the third-floor space into a usable working office. As of now, all remodeling is paused, but replacement window work is scheduled to begin in a week or two, and then we hope to completely redo the siding and trim on the house exterior in the spring of 2008.