Weird floorplan HELP

[Glenn Espinosa]

What would you do to this floorplan in order to make it a 3/1.5 or better yet a 3/2?

The house is going for 28k and would need 35k to fix up in order to sell in the 110k range. Keeping it a 2 bedroom would net an ARV in 95k range.

Ideally I can find a cheap way to turn it into a 3/2 without doing a dormer.

Oh and that weird space in the front next to the living room... yeah that's gonna be opened up.

Thanks for any suggestions.

http://i.imgur.com/7ESQZ.jpg