How would you remodel this for most use of space?

[Jhonatan Ramirez]

I am looking to rehab a 2 bed 1 bath house and Turn it into a 3 bed 1 bath house and rent the rooms out individually to college students (located behind a college campus). The house was built really oddly with minimal space for a living area. Here are pictures and my thoughts remodeling using a maximum $15k budget.

I want to remove the large stairs and put in a spiraling staircase to give the area more usable space. I will also redo the whole kitchen and remove the attached island for a floating island with bar stools that hid underneath. I will then replace the swinging door to the fiat bedroom with a sliding door. This should open up space to create a cozy living area.

Upstairs I'm thinking about turning the open living area into a 3rd bedroom for maximum cash flow. 

In the end, I should be receiving $1500 in rental income from a home purchased for $70k with a 10% down payment and cash flow $600.