We need to see the house and floor plan

I don't have a floor plan, is there a good tool that I can use to create one?

Do you have to add an addition? For example, could you convert a dining room, a living room, or a family room to a bedroom? Is there already a powder room on the first floor?

I'd stop trying to make a very nice family home into one appropriate for a Senior. What will you do with the oversized *rest* of the house -- a whole second floor and a basement, which you will pay to heat and cool and pay taxes on? I doubt your doorways are wide enough for a wheelchair or that there is a full bath on the first floor that could accommodate one. Where's your laundry equipment? Can you easily access the garage?

There is a living room, hardly used and a powder room on the opposite side of wall. I have though about possibly using it as a bedroom, however I have not been able to find design inspirations that would give me an idea how that would work. Possible a bedroom and small sitting room

I have a hall powder room that leads to a laundry room/mudroom which leads to the

You probably need to hire a designer to walk through the house for you and come up with rough plans and budgets for various options, and as others have alluded to keep your options open up to and including moving.

Michelle - HALLETT above has good advise. Investigate options with a professional designer who can also give you appropriate costs. But also consider 55+ housing. I swore I would never live with all those old people but smartest decision I could have made. I spend 95% of my time on the first floor of a townhouse with bedroom, bath, kitchen, living room, garage, and laundry. I have full basement for storage and upstairs for two guest rooms and a full bath. Everything is built for wheelchair access if I ever need that. Neighbors are wonderful folks who watch out for each other. I have a small yard for a garden.