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I would go an electric version of the fireplace as you have no gas. Would need to get electrical cabling up to that point, would need to make a few holes if there is non there already. So still looking at a few $100. However, it will save you having to sort out the flooring. Replace the...

Just remove bricks, patch and paint. I would imagine. $300-400 depending if paint is supplied. What have you got in mind for the floor though? Wall is one thing, gap in wooden flooring is another.