First, thanks for your question! Even when I was a kid, I always fantasized about a dream house. (I think geometry classes would have been far more engaging if they'd had 'design your dream house' as an ongoing project.)
I love where I am now, a 1920's bungalow. If I had an unlimited budget:
I'd buy out the neighbors behind us and demo their house. Big backyard with potting shed.
I'd replace our kitchen nook picture window with something that could open and look out over the back yard, screened in...
Which leads me to a screened sleeping porch, for summer.
We only have one bathroom right now, so I'd add a second one upstairs, in our converted attic/master bedroom. Small one with a sink.
I'd change our old bathtub out for a clawfoot tub that I could soak in.
Revamp the kitchen: poured concrete countertops and a new oven.
And I'd have the hallway walls resurfaced: they are currently what I call 'drunk stucco' . I think a drunk person stuccoed the walls. It's terrible and you can scrape yourself on the wall.
Lastly, I'd find a way to loft Kiddo's bed somehow.
Outside, we'd paint the house something bright and fun. We get to do it next year.:)
Otherwise, I'll keep most of what we've got: old good hardwoods and period fixtures. I'll keep my haphazard cottage/veg garden with our fruit trees.I love this place, this home of ours.