I would look for a freestanding, tall, enclosed storage cabinet with closet space to store all your items. You can take it with you when you go, and use it in almost any room later on. You can use a blow up mattress in the room when you have guests (store it in the cupboard with the linens), or look for a chair that converts to a twin bed.

I'm looking at the small area of wall next to the door - how many feet is that?

Thanks for the responses. The room is not a rectangle. It's actually an L shape with 7x8.5 the main part of the L and area where you walk-in is(small part of the L) is 28" x 58". Hope that makes sense. Yes, I could get a blow up bed for guests and just use this for storage. What kind of free standing storage cabinet were you recommending @calidesign? If I use it as storage, I would still like it to look reasonably presentable.

A storage ottoman a storage bench for like the kitchen or entry way

Tall book shelves

Look at Ikea for budget ideas (first photo), or consignment stores near you for antique armoires. I would stick with closed storage to keep the room looking neater. If you want to invest in something, and depending on your style, the second and third photos are West Elm and Pottery Barn.

That's a small amount of space. Get a bed with built-in storage drawers on the bottom and a slim armoire with drawers. Check Craigslist and make sure your measurements of anything you add will fit.

Everything else should go on the walls--lamp, small bedside shelf, book shelves (though shelves you have could be used as a divider/bedside table.) You really have to give people photos of all four walls.

Ok the unit and chair - would the unit work with typical Home Goods baskets? even keep the chair.... add another unit on other side of chair. Do I understand correctly that it's 28" from edge of door to the wall [with shelving]?

How many feet on other side of the door? would a twin sleeper work there? move it if you have to when someone wants to nap... W 24" / D 29" / H 24" and in black for $80

Jr. Twin Studio Chair Sleeper in Blue · More Info

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ultra-suede 16.8 lbs. •Product Dimensions:83''(L) x 28.3''(W) x 4.5''(H) •Product Dimensions with folded pillow:66.5''(L) x 28.3''(W) x 4.5''(H) •Chair Dimensions:21.7''(D) x 28.3''(W) x 8.7''/23''(H)

Costway Fold Down Chair Flip Out Lounger Convertible Sleeper Bed Couch Dorm · More Info

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Where I live, people are selling their TV cabinets very inexpensively, even free. I mean the old tall armoire type for the older deep TVs. Great for storage because they're large. Lots of ideas online for storage ideas e.g. children's play kitchens, bar units, just plain storage.

The drawback is they are heavy and hard to move.

This is a cool set of re-arrangeable seating/sleeping pieces.

Multi-functional Space for Office and Guests. · More Info

Multi-functional Space for Office and Guests. · More Info

Can this be a bedroom without any windows? Seems like it would be dark, airless and not very good for guests. I would put shelves on two walls for storage (doors or not) and a closet type storage unit for things that will not fit on shelves.

Where the MIRROR or a painting in there if gonna use it for a bedroom