Thanks so much everyone! I really appreciate all your suggestions. I guess my downfall is that I'm a 'researcher' - I have to see ALL my options out there before I make a decision. Definitely no impulse buys for me - ha! But then of course, it drives dh bonkers because it takes me FOREVER to make up my mind! :) I was actually thinking of a warm cream or light yellow. Dh really wants to paint the floor sage green (which I don't really love, but I rarely let him have his way - haha). So do you think a pale yellow would look ok with a sage green floor? Does anyone have examples or pics of a nice soft yellow (I don't want anything TOO yellow). teacats, I love your art idea! I do really like some of those animal prints or we might even try to paint some ourselves. I was definitely thinking of having dh build a bookcase w/ colorful bins for storage, then I also want to have an arts/crafts area (with a dry erase wall to write on) then also a kitchen/baby doll area, reading nook w/chairs, sports area w/balls & bikes, and then a dress up area too. My problem is I have so many ideas - I just have trouble executing them all! Does anyone know of any cute kids rugs (bright stripes or some type of motif) for under $200? Thanks again for all your help!

Whatever you decide to do, I would, personally, want the toys as far away from the stairs as possible for safety reasons, and tucked into that lower left corner to keep them out of sight when the area gets a bit messy. :-) Of the layouts proposed by ER, my favorite is in the latest batch of 4 (upper left quadrant), right above my post, except I'd put the toys where the exercise equipment is, and have the exercise stuff by the stairs/bathroom wall. I especially like the symmetry of the TV/furniture arrangement with the windows.

I've got the sofa downstairs now. I covered it with what I had on hand - a huge black blanket and a smaller white one. The red thing behind the sofa is a mattress. It's a safe place for the baby to sleep at night (I block the way out). Now I'm wondering if it makes sense to buy a table and a lamp for the armchair. This part of the living room could be the actual 'living' part, while the other side is dedicated to children and their play. How about some kind of a wall art? I'm sorry, and it probably sounds like I don't know what I want, but I would like this room to look more 'finished'. Do I expect too much? Maybe it would be best to wait for four or five more years and then redesign this space? But can I wait that long? I wish this house was arranged and I didn't have to worry about it all anymore! :( We've been living here for three years now and it upsets me that everything looks so awful. We don't even have a hardwood floor upstairs - just go with carpets on concrete floor. We are currently having a bathroom made, but imagine living all that time with temporary solutions :( There are only a few things that we actually bought for the house - the rest are hand me downs - nothing matches, everything old and not to my style. I'd like to turn this house to home at last. Maybe I should go to ikea, look at those timy flats they have there and order everything there is!!! I'm sorry I just needed to vent :(

Maybe this article will help. The colors she's suggesting might work well with Sea Salt. I think Creamy would brighten the room and be a nice backdrop for other colors. I also think white or off-white walls with a black accent wall would be awesome for bright colorful kids' art. Excited for you and the family! https://www.kylieminteriors.ca/the-best-light-paint-colours-for-a-dark-room-basement/