A Conundrum

I need some advice. We are in the process of cleaning out the 3rd bedroom and moving one of the kids over so they each have their own room. The only problem with this room is that it is completely separate from the other two rooms, on the other side of the house. This scares me tremendously, however, we are slowly outgrowing this 3 bed/2 bath house and the kids have more... dare I say "crap" than their little room can carry anymore. It's literally bursting at the seams!

So, I need some advice from you mom's. Do I move my 3 year old daughter over to the new room, redecorate it for her, but risk her getting woken up by the heater/water heater that is on the other side of the closet? And also, do I risk her potty training at night to come to a screeching halt because the closest bathroom is on the other side of the house?

Or do I move my tank of a 1 year old, that sleeps through everything, and doesn't have as much "stuff" as his sister? The only draw back to this situation is if he moves over then I have two rooms to redecorate. Now, normally this would be my dream come true, however with our finances the way they are, it would have to be on a very tight budget (which could be fun) but would take longer to accomplish.

My husband and I are a little lost in this department and I am thinking all of you are so wonderful and give great advice. What would you do?