Overall, the space division is awkward and unworkable. Where are the closets? It's not a legal bedroom without a closet. The master closet won't work as pictured. You've got to have room for people, which means you'll only get hanging on one long wall and the end. In a space challenged home, reach in closets occupy much less space and give you better value. Plus, the bath should be on the exterior wall in order to have a window.

3 bedrooms are expected to share two wierd powder rooms and an overly large full bath? And the bath isn't close to the bedrooms at all.

If that's the entry to the home, can it be moved so as to come into the public space instead of the private space of the home? Then that space can be allocated to the bedrooms.

You need a professional involved here. But, only after you see a banker. Such an extensive re-making of a home is likely to cost almost as much as it cost to buy it. It's not likely to be a good investment unless it's a beach rental cottage or something like that that's income producing.

Thanks for the comments.
We are working with a professional, it is a tough space. We didn't move the bathroom and closet around as there is a very large existing skylight over the bathroom which would then be over the closet. May still swap it but seems like a waste of light.
We do not need closets as we are having built ins added which are more space efficient. I also learned that the county defines bedroom by use and closets have nothing to do with it. One does need Windows big enough in case of fire.

We have a budget and several quotes and the remodel is 20% of the cost of the home it is on the water, but thanks for the concern.
Thanks to all for comments.

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Coming from a house that has no closets...I will advise you against that. I actually added four closets in my addition/remodel. You will get very tired (even with built-ins) of not having a space to put things and shut the door.

There is such a thing in architecture as you can't get there from here. This is a good example of it.

The only way I can think of that will accomplish most of what you're wanting to do is to flip the family space with the bedroom space. That would put the kitchen in the master bedroom and leave the rest of the space open for family room/dining space. Then the bedrooms would actually be close to the baths, and work. I haven't taken a look at square footage allotment to see how large the bedrooms could be, but anything is better than what you show. And, you need closets. Whether you think you do or not. You'd be totally destroying any resale appeal to the house if you didn't have closets. Just creating the number of small bedrooms that you're creating is doing a pretty good job of tanking the home's appeal. Couple that with no closets and you'd be reducing it to land value alone.

I think you have a lot to think about, but I want to point you in at least one place for one of your questions...

About minisplits--I have 2 sets at my house (one LG dual-head; one Mitsubishi with in ceiling circulating units with small/short ducts to every bedroom--4 runs). I am located just outside of Seattle and we rarely have too cold of weather for them not to be fully adequate to heat the house...but, this week, it has been. House has been about 60* when we wake in the AM. We lose a lot of heat out our useless wood burning fireplace. That is my next thing to replace/improve on energy wise here.

A good place to learn about minisplits is on the HVAC forum here on Gardenweb.

Could you swap the function of the big bath by the front door with a bedroom? Then it could pass as a den/office and be less weird.

They seem to be about the same size.

Can you post the existing house plan so we can see what you are working with?