If you’d like a seating area:

I would dig up all grass and put down some sort of inexpensive material ... look around on buy/sell/trade sites in your area. I find free stones/pavers/etc in my area often.

Paint your other chair and small table red, like the Adirondack chair (or paint them all three in a different color). Set them up, put a potted flowering plant on the table. You could plant a few things in the front part, as some of these show —

If you don’t want a seating area, I’d dig up the grass and plant some things. For instance — small shrubs in front of the windows, perennials in front of those, or succulents or tropicals. Whatever does well in your area. You could add a bird bath or something else decorative in it among the plants. I’d want low-growing, very natural looking, nothing uniform.

This is not meant to show any specific plant selection, but just a visual of having it fully planted —

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ETA: Sorry, just noticed something in the middle there, is it an asphalt strip? Can it be removed? If not, won’t be hard to work around.

$200 is not a very realistic budget, even for just a handful of plants.

$300 will get you a new table and chairs, enough gravel to fill the sitting area and a quart of paint for the front door. Just remove the railroad tie trip hazard step. Your picture has well used outdoor lounge all over it.