Following your desires I have arranged this small multi-functional room into areas which complement but not interfere with each other. I have used most of the space but still left enough so that the room is not overcrowded and has a flow to it. Dining area is adaptable because the table can be completely folded into a narrow shelf for maximizing the space or it can be expanded by a half that seats 3 people or both sides to seat 6. Living sleeping area contains a convertible corner sofa which can be used for sleeping with or without expanding it and has a storage beneath it for bedding. Also, converting the bed into a large bed doesn't require moving much furniture which would be the case with the murphy bed option. The niche is occupied with a white tall wooden library with half/glass door that also provide more light and space, and I would recommend since it is well under budget to replace the computer table to match the feeling of a new interior design. Above the new desk is a wide shelf which can accommodate the printer or other things. I have added some decorative elements such as carpet, curtains and other in a touch of color to give the space a little accent and with replacing them you can easily change the feel of the space and not spend a lot of money. I hope you like it and get to enjoy it!