Our new house has a walkout basement. So half of the walls are foundation and half are drywall. If we wanted to finish a couple of rooms, how would that work? Do you just drywall over the drywall or is it more complicated than that? (We won't be doing it ourselves, I am just curious how it gets done!) Is there a way to make the space (currently an entertainment room) warmer or more cosy? I thought about hanging up some sheets or blankets but that felt extremely college dorm room. Could we use vinyl plank or linoleum for now? I don't know anything about building so sorry if all these questions are dumb.

Also, please don't mind the super gross couch; it was left by the people who previously owned the house.