1) wall may be structural 2) you may have to replace all the flooring if you remove it, unless you have more on hand 3) I'm confused, because it looks like the dining room is already in the main space, up by the kitchen/window where there's a chandelier hanging down. then I see two ceiling fans worth of LR space. the more enclosed room to the left looks like an additional/separate room, maybe intended as an office, or as a more enclosed space (family room) for TV watching. if you open it up, you need to think hard about where you are going to put the TV with furniture facing it, and how you will subdivide the rest of the space. If you can draw a sketch of the floorplan, with measurements, including things like whether there's a closet near the front door, we might be able to rough in some different arrangements to help you visualize what you might be able to do with the spaces. It's a bit too hard in the abstract to tell whether this is all one big seating space, or whether it's big enough for an entry zone or game table and a separate conversation area, and what would happen if you added in yet more LR space...

So I would have you cable outlet moved so you can put you tv in that corner area by the bathroom. Either put the tv on an articulating arm that you can pull out and turn toward the seating area or just angle the tv in the corner. To me, built-ins would be the way to go vs a tv stand/console. I also created another seating area which l linked together by doing a “wall” of drapery panels. With the sectional on the long wall, it gives you a nice focal point as you enter the home.

I would research (by visiting) rentals in the area and seeing their condition vs rental price. Your biggest challenge will be to improve within the income possibilities of the market in your area. Cash flow will also be a consideration. So assess the area, see what upgrades would be needed to get the “income” to minimize your outflow of cash. Consider state taxes and other costs to make sure once you lease it you make some profit over outflow of cash. Older homes cost especially when routine maintenance has been done over a long period of years. Consider selling in this hot market to bank equity now for your future. Just really think things through and analyze all the pros and cons. As to drought resistant plants, ice plants near houses in this location are great and a big perimeter of them will help protect the home from forest fires. They are filled with water. Once you remove that tree, plant one that won’t get into your sewer lines or mess up your foundation. Check with local college extension office and get tips from them. Most have lists of suggested plants and trees. Aloe plants are good too. A garden and small bistro table and chairs converting driveway area to patio would be inexpensive way to boost curb appeal. I would paint exterior an off white with black trim. Black pots creating front patio and entry. If you replace roof, go with black or dark gray. You can add outdoor rug for color too. Then get driveway repaired. I put an acrylic awning over small garage door. You could do a black and white stripe fabric style awning too. I added two large modern exterior fixtures. Then aloe plants in black pots along with drought resistant plants on strip to right of driveway. A lighter exterior color would modernize your curb appeal a lot. Black trim and either a cedar front door or semi gloss black door. SW Tricorn black with SW Pure White or Alabaster for body of house. Carry that color palette inside home for continuity.

Thanks for being the first replier! I'm Dutch :). I forgot one detail, the balcony is more in the lower half of the living room so that's quite nice. This means that the door won't open toward the couch (in our illustration) but towards my dining table. I think that the distance between the couch and the television is too small. So I'm thinking of placing the couch towards the southern wall, the dining table on the left, next to the living room door. That is the best way to design it. Not my first choice though.