Complete Reno on a 550sf duplex. What’s the best layout ?

[Shalom Benton]

I have a super small duplex and I’m doing a complete Reno on it. We just recently did a full re roof and raised the roof to give it more space. Currently each side is a 2/1 with small rooms (550sf total each side). My question is should I knock down a bedroom wall to make the living room space bigger, and make it a 1/1?

Even with a 2/1 I think my max rent would be $600 each side. What’s your experience with renting out 1/1 units? Would you knock down a wall to make a bigger living room if it meant dropping from a 2/1 to a 1/1?

I’m looking to refinance and repeat once the complete Reno is done. So after repair value matters too. Thanks!!!