rearranging plumbing and walls will blow the budget so you need to decide on a whole house plan instead of asking about lots of separate changes for each idea...what is the final result that you want to achieve for the whole house and how much is your budget??

This is a really small house. It has a real lack of storage with only Bur in one room. There is no hall cupboard so laundry has to have storage at least a broom cupboard. The bathroom has no toilet and you would need to loose sep shower or bath to move it in there. If this is a low end rental then best to just open up the lounge entry and close up dining. At robes to bedrooms and dining if that is to be bedroom and let renters work out furniture. You can’t move laundry unless it could go outside.

You have purchased a beautiful old weatherboard home with TWO bedrooms. It has wonderful high ceilings and great cornices and architraves. Make the home clean, electrical and plumbing safe and working correctly, And leave the bedroom, dining arrangements to the tenants. Do not ruin this house, just because it’s not three bedrooms. If you want to make it three proper bedrooms then you will have to spend lots of money for a proper extension. By your posts you don’t want to spend money…..so leave as is. Just make it clean and inviting. Regarding the fans on your other posts. If a fan was installed in the hallway, it was probably needed for airflow. You obviously have not lived in the home, and unaware of where breezes come from and general cooling and heating required for this home, so I would replace with a new fan with light. As it appears the hallway fan was required by previous occupants.

hard to answer a question regarding budget without knowing what the budget is...... but if you were going that far it an alternative scenario would be to consider moving kitchen to the dining and making the existing Kitchen the Dining space. Then you potentially achieve a connected Living/Kitchen dining......

Trouble is the original poster, Belinda, on another recent post, also wants three bedrooms. The suggestions put forward was to use the current dining, with the request from OP, of “minimal spend possible”. So now Belinda is looking for somewhere to place a dining table…..