Context is key. Post up pics of you truly want advice.

How many weeks out of the year do you have guests?

Will converting the second living room to an ensuite bedroom add to or detract from your home value? Your real estate agent should be able to answer this.

If you go through the major expense of converting to an en suite, it would be a shame not to use it yourself rather than leave it for occasional guests.

I'd need to see a floorplan sketch to have a real opinion, but here's what I'm wondering: Is one of the living spaces an add-on? I ask because where I'm from (South, very rural NC to be specific), a lot of old farmhouses were built "in stages" -- the family'd build what they NEEDED for the moment, and when the oldest girl was "old enough to court", they'd add on a parlor accessible by a separate front door. These houses usually had a single bedroom for the parents, and the children (both genders) all slept in the attic -- and often the boys slept in the hay loft in the summer. What really surprised me is that most of the houses lack a real staircase -- the kids climbed a ladder attached to the wall to get to their bedroom.

Source: My grandmother, who was born in 1913 -- so she would've been in her youth about the time your house was built. She pointed out this pattern in numerous houses owned by extended family.

Looking forward to seeing a floorplan. without it, my guess is that a two bedroom house is usually worth more than a one bedroom.

When you post pics it would also be a good idea to also post a floor plan. I had a home that started out in 1905 as a 2 room space ,in 1926 a quite large expansion was done to double the main floor then a 1/2 storey added then in 1946 the whole house was jacked up and a basement was done. Old houses often have that type of history . I found ours out at a museum in Calgary when I got curious as we started renovating.

What size is the window you are thinking of Sheers for?

How about an inside mount top down bottom up blind for a clean fininsh with light control and privacy when necessary... add sheer panels if you like, but such a small place needs to be kept simple.

Great idea! Extra space to utilize as you need, and it's FREE!

There are many reasons for two front doors...obviously, yours was built to have two parlors. Maybe one for every day living; the other used for company. The uses are interesting; you can google.

Could you sketch out or take a photo of the side that has your bedroom, bathroom and kitchen? It's a bit confusing.

Is the house Craftsman style?

Waiting to see floor plan. Make sure it is done in scale and shows every window and doorway and where those lead . Every measurement clearly marked Posted here in jpeg format in a comment