Design for a Small Living Room
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I would think about installing a Murphy bed on the ten foot wall. There are styles with built in desks so it can double as an office and guest room. Then maybe two love seats across from each other with a storage ottoman between them to hold bedding, blankets, etc.
There are a lot of affordable living room ideas if you don’t wanna spend too much money on redecorating your space. If I were you I would repaint the furniture, making it a nice white, I would replace the rocking chair and add some plants and a tall standing lamp. I would put some paintings on the wall to give it a nice and welcoming feel. Try to place a rug, to add a pop of color in the room. This year bold colors are rocking and chosen by a lot of people. Personally I like the modern look, so I would go with something like this, nice white and glossy furniture with black metal. I would have an accent wall and put a nice cozy sofa in the middle with two matching chairs and a glass coffee table in the middle and some candles as a decor.