No exterior wall changes.
If more natural light is needed, the existing windows may be augmented with fixed-glass lower transoms.
The fireplace is retained but just added with a low mantel to deflect radiant heat and protect a TV above.
Optionally, the Bedroom divider may be a 6' tall low wall to allow air-conditioning & natural light to filter through.
Pocket doors allow varied options for Bedroom's openness or privacy. These may be French-door type with smoked glass panels, so the Living & Bedroom do not feel enclosed & isolated from each other.
For cost-efficiency, all new plumbing is restricted along the back wall of the existing Powder room.