Turning 2/1 into 3/1?

[Hung Nguyen]

I have a house that is currently a 2br/1ba at 1150sf. It currently has a big living room, dining room, and kitchen all right next to each other. They're blocked off by walls, which I am planning on opening up a little. I was thinking if I should turn the extra living room space into another room. This would decrease the space, but add another room. Would renters/future buyers prefer this, or the bigger living space?

The other option would be to turn the attic space into a bedroom + bath. I worry that this option would require permits and add too much cost. However, if doable would add more sf.

What are your guys' thoughts? It's located in Greenville, SC