Assuming the old bedroom is where the kitchen is now, it's physically impossible to make it back into a 2 bedroom bungalow without having to expand the house.

Looked at your other post with this question, not sure the point of the photo of a wide open dining space, other than maybe the wrong photo posted?

Why would you want to change this back to a two bedroom?

Looks like your options are to put one in the basement or give up the living room - which makes the dining space both a living/dining area. Or turn the kitchen into a bedroom, and make the dining become an eat-in kitchen with a walkout to the side drive and then backyard. Either way - I cannot imagine the cost to do any of these renovations (other than basement) would get you a return on your investment. I think you would be spending money only to lose value on the house.

If you're looking for temporary sleeping for guests consider a murphy bed or quality sofabed for the living space. Other than that there really isn't any way to carve out a new room from the existing spaces on this floor level.

@dyetecture - yes the old bedroom was were kitchen is now and kitchen was beside basement stairs at front of house. It's a design many of the old homes in this neighborhood have, but main disadvantage is no walk-out. Thanks for your response!

@catieb - that picture of dining room appeared in my post by mistake and I haven't figured out how to delete it yet. Thanks for you response.

I know it does seem impossible. Our thoughts were to put two bedrooms and small bathroom in the middle on one side with kitchen (where bedroom is now) and dining room (where bathroom is now). But they would by tiny rooms.