I love love murphy beds. Let's face it, sofa beds are hard as a rock for a sofa and impossible to sleep on those awful mattresses. The only sofa bed worth anything is from American Leather, which is on the high end.
You get the best of both worlds with murphy beds because it has a very comfortable regular mattress which is made up before closing and saves an incredible amount of space. I specify them all the time and my favorite is Clei available from Resource Furniture. The Clei system has a beautiful sofa and the bed comes down over it. Available in different style sofas and wall units with lights and storage.
If floor space is an issue, take a look at murphy beds which come out horizontally. The projection when opened extends 70" into the room as opposed to a 90" for a vertical bed (the head at the wall). The horizontal bed is only about 67" in height and not to the ceiling, so the cabinet is not so imposing.
Another approach is to search craigslist in your area. People are always moving up from a studio and deals are to be had! The cost of a murphy bed is in the mechanism, it's very easy to have a carpenter build a cabinet around it.
https://www.clei.co.uk/clei/atoll_000.htm#
https://resourcefurniture.com/product-category/transforming-wall-beds-by-clei/
https://bredabeds.com/horizontal-urban-murphy-bed.html?gclid=Cj0KCQjwpPHoBRC3ARIsALfx-_Kq1pcwEFUX69h6XJBj0I_7P3DmWay9E0qVwQBgdY71YVGCR1j5Dm0aAuQZEALw_wcB
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