I'm not sure how well this will turn up. It's obviously not drawn to scale. The total heated sq ft is about 1600sq ft. Bedroom one and two are very similar in size....probably 10X12 I think. Maybe 11x12. Bedroom one is already the guest room, so I think we would keep it that way. The only window in that room is on the wall that is the front of the house and the window is right smack in the middle. I hope this helps illustrate what I was saying about the living room/dining room. Not a lot of wall space for a desk.

Design is not my forte, but I can pass on some practical tips from our combined office/guest room. With any dual-purpose room there is bound to be some compromise, but flexibility is your friend. A good example is the shelving unit in Patricia's picture that can also serve as a bedside table for the sofabed. It looks as though you have some built-in storage already, but I have found that the IKEA Pax/Komplement wardrobe range is great as you can design the wardrobe for both office storage and clothes and easily switch around drawers, shelves and hanging rails. Whether you consider it chic is a matter for your taste. A sofabed that unfolds so that the head of the bed is the back of the sofa can make it easier to plan bedside furniture, as side tables become bedside tables without having to move furniture around, as you would with a trundlebed where people lie the length of the couch. The downside is that sofabeds can be heavy to unfold and are not often as comfortable. If you use a computer screen, consider a TV that doubles as a monitor. That way, you only have one screen on the desk. After you have plugged in all your office equipment, make sure there are enough sockets left over for guests to charge their phones/plug in hair straighteners/etc. Spend a night or two in the room. I sometimes use ours if I am working late. The first time I drew the curtains and switched out the lights, the room was lit up like Times Square. Those standby lights on all the electronic office equipment suddenly become very bright when there is no other light source. Where practical, make sure that equipment can easily be switched on and off. Some things, such as a modem or router might need to be on through the night, so it either needs to be relocated into a closet (or other room), or the lights taped over. I also discovered at about 04:30 that we needed thicker curtains than when we were just using it as an office. Lockable filing is useful, so that any confidential work papers or your financial documents are secure. I generally trust my guests, but I shouldn't want to risk their kids getting artistic with our latest mortgage statement. And some feedback from our first guests: a webcam and microphone, even if switched off can be somewhat off-putting in a guest room. I'm hoping you will show the room when finished, so that I can steal some ideas.

Regardless of forever home or not it would make sense to utilize the closet better for all of your 'office' stuff so if that means getting an outlet put in there so the printer and all your stuff on the tall shelving can go in there - that would be wise. Then, daybed or not, replace the tall shelving and nightstand with a continuous low closed storage furniture piece - maybe like this photo - this will open up the room visually. This furniture piece can function as a nightstand and office storage. Closed storage is your friend in this space. Replacing the closet doors with slider doors would allow for the 'office' to function easier. Maybe the inside of the closet is converted to half 'closet' for guests use and half 'office' with shelves for printer and office supplies. Then, once you decide on daybed or not I'd repost an updated photo and we can help with rearranging art. I think where you have it now is not doing the room any justice. I could see it consolidated/edited on the wall where the tall shelving is as that will create a focal point.

Nobody is going to wade through a description of the space in text, nor the possible storage solutions. Post a pic of the space. Draw the space to scale, with all dimension. Upload photos. Or get zero help.