First would be Need To projects. Like ditching the carpet. And the water heater.

Second is Nice To Do projects. Like vanity/toilet replacement. Except replacing anything in the bath slated for overhaul. That will be part of the overall job anyway.

Last is the Sure Would Be Nice To Have projects. Once all/most of the necessary/smaller projects are done, you have time and can plan for big ticket projects. And, it would be really bad to have the water hearer fail in the middle of a $14K bath reno.

First priority is things that, if not addressed, will reduce the value of your asset. Like replacing a leaky roof or rotten floor joists. Fix them now for $$ or they'll become $$$$ problems.

Second priority is things that have an impact on your quality of life. Like replacing a stove that has 2 non-working burners, or other broken stuff. Things with health implications (like carpet and allergies) fall into this category.

Third priority is things that need functional improvement. Like adding storage shelves or changing the layout of a room/floor.

Fourth priority is things that are ugly.

You can move down the list as you have money to address them. So I'd take your entire wish list of projects and categorize them per the above. If toilets need replacing because they leak at the base, they're a #1. If they need replacing because they run and you're constantly taking the tank lid off to seat the flapper, then they're a #2. If you need to gut the bathroom for a more functional layout, they're a #3. If they're avocado green, they're a #4.

Your health comes first. That's a no brainer.
After all, you live in the house, and if you are uncomforatble with allergies, get rid of the carpet.
Then the hot water heater. Can you imagine living without it?
Unless you love cold showers....
Then after those two things are done that will make your life
comfortable, you can decide what else you want to do.
Health first, necessary comfort second,(like hot water), and then whatever you can afford.

My husband is skeptical that removing some of the carpet might help my allergies, but that's the project I've been pushing for. I've lived with carpet most of my life (blah) so I can't really be sure. Can anyone with indoor allergies say for sure they noticed a difference?

HUGE difference!!!!!!!!

We lived in a mobile home for years(best way to send sons through college with no loans). Had carpets and I took them out. That helped, but trailers are famous for being dusty anyway.

Moved into this house---installed all hardwood or tile flooring---allergies got much better. Had dogs all the time in both places.

I would consider what is going to add the most value and enjoyment to your home first. Do you have a lot of guests and people coming in and out? Then I would do the floors with a good quality hardwood for lasting value. It will increase your homes value over laminate flooring. Tile is also an option.

Here is a link that might be useful: Paris Group

I think you'd get better advice about allergies from a doctor than from a remodeling forum.

Where do you think I got my info?

Having allergies much of my life and having kids with them, I learned a lot about how to minimize them.

Handymac took the words out of my mouth. Huge difference! One of the first things an allergist will tell you is to get rid of the carpet. Also to encase your mattress, box spring and pillows in allergy control covers. Fabrics and stuffings are also to be minimized. But you have to know what you are allergic to. Dust is a very common one.

@mag -- I'm not asking for allergy advice lol I've had 2 (3 in February) sinus surgeries and have been taking allergy shots for 2 years. I have been to multiple doctors. I was simply asking if people who have removed their carpet noticed a difference.

Carpet removal is absolutely beneficial for allergy sufferers.

Your DH saying it's not makes me want to kick him in the butt for you. Don't be a pushover on this--he's wrong and probably knows it.

(I agree with the order of renovations the others have posted.)

Here is a link that might be useful: http://www.mayoclinic.org/diseases-conditions/allergies/in-depth/allergy/art-20049365

Ayimera, I'm glad you've seen a doctor. I don't assume their diagnoses are always correct, I'm just saying they have a better track record than carpenters on medical matters.

Do you have the skills/tools/inclination to do any of this work? It's not difficult to replace a toilet or even a water heater.

I think you're underestimating the expense of replacing the carpet with laminate. The baseboard is likely raised to accommodate the carpet, so you'll have to install shoe mold to hide the gap, the gap may be wider than shoe mold, which means removing/reinstalling/replacing the baseboard, which means repainting the walls. One thing leads to another.

I wouldn't replace anything unless/until it broke down. I'd save up and tackle the items on your want list one by one.

My first priority would be the carpet. We have two hair factories, a dog and a cat, and know very well carpet plus pets is a disaster. The thing is, floors are one of the most important things about a home. Save on drapes, save on landscaping, save on furniture - don't save on the floor, and I recommend pre-finished, tongue and groove, solid wood. It's beautiful and a good value.

I probably am underestimating the cost -- we're going to a local flooring place tomorrow to kind of check things out and see about getting a real estimate. It's only about 200 sqft on the first floor though (of actual carpet, the kitchen is a wood-looking vinyl). So we just have to decide if we want to have the floors mismatch -- which would save money -- or do the entire level (which is another 200+ sqft) to have it look consistent.

Are you allergic to cats and dogs? If you are, replacing carpet may not be enough.

Slightly to both, but my big trigger is dust mites. I developed the allergies after the cats unfortunately (who are the big shedders). I love 'em, but can't say I won't be a little relieved when they pass.

After you look at new flooring, do visit the home decorating forum if you need advice on mixing the new floor with the kitchen's old floor--it can be done nicely with the right choices.

I'm glad your DH is looking at new floor with you. I was probably a little hard on him due to being grouchy from a day of bad allergies. :)