Our new sleeper sofa arrived today! It took a LOT of planning the existing furniture, lots of graph paper (for hubby, definitely not me!), and measuring to figure this out, but we made a couch fit in our little downstairs room. It's a sleeper couch, so we're hoping that when company comes over to sleep we'll be able to fold up the couch/sleeper part in the morning and still have some "living area" down there. Before we always used an aerobed, which slept pretty well, but was really inconvenient to deflate every morning...so we didn't. We really wanted a couch down there anyway, so we could enjoy the fireplace, read, or do whatever and still have a place to sit.
Photo taken from on top of the first stair landing.