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[quote=Anonymous]I have a 1929 Dutch colonial about that size and love it! 2 adults, 2 kids under 10.

1. Keep clutter to a minimum! If it does not have a designated space, don't let it in the house.
2. Renovate what you can (plumbing, roof, etc) with the idea that space is at a premium and then 
3. Educate yourself in decoration (wall and floor tiles, wainscot, paint color, wallpaper patterns, window dressing, etc). 
4. Look for small, slender furniture, and multifunctional furniture with storage (think ottoman cube with storage inside, or plexiglass nesting tables to spread out if you have guests). I like to go to estate sales to get period furniture that goes with my house! Modern things are far too bulky.

Do not just walk into a store and buy on impulse. We took more than a year to renovate structurally with a contractor and think about the atmosphere and colors we wanted in our house. I spent hundreds of hours on the internet reading about these things, and bought a color book from Benjamin Moore.

PP is correct: we spent a year+ looking for this house and in the course of visiting many similar-sized houses developed ideas for ours.

We renovated extensively - gutted the ground floor to create a powder room and open kitchen, dining and sunroom. No wasted corridors and lots of light.
First floor has 2 bedrooms, 1 tiny bedroom and a bathroom.
Our dream is to create a real staircase to the attic (in the existing stairwell, no additional space needed) so that we can create an extra attic bedroom. The attic roof must be correctly insulated for this.
We cannot use our basement yet, because all the renovation materials are still stuck there. But there is a bathroom there (and laundry closet). We want to separate a storage area from a guest room area.

The only thing we cannot create is more closet space! Can only add built-ins or wardrobes.

Good luck!

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