With your original pictures - I agree with larger rug. But I don't agree with comments suggesting the rooms are monochromatic. They are lively indeed. I think you are just missing some accessories! Art work on the empty walls - even just a single large dramatic piece is in order. In the bedroom on the white wall, in the living space behind the sofa, in the greenish bedroom behind the two beds. Those are instant areas where you can improve. But I think your spaces are lovely and well put together. Also I agree with the comment about table lamps - some of those would really add something, and your coffee table looks so empty - maybe just one gorgeous bowl, or stack some books. These rooms are 90% done in my opinions, just need a few finishing touches. Some of my rooms come out like this because the clients are not willing to pay for those last few finish items or feel they can do that part themselves...

Since the lot you describe is smaller than my open living area, I would suggest looking at some of the "shotgun" house plans around New Orleans,LA. I think you can build up and back and get an interesting home with a loft for space. It can be done, A porch with an entry to a narrow hall at the back might work best for you. Will you plan a courtyard (closed)? or what? What part of the country are you in? What are your local codes?

On your paint problem I can't be much help. This usually happens because of damp -- please get a damp expert to make sure that there isn't any damp lurking in your walls. I had this once when I had pipes leaking inside the walls. I didn't know that. The other alternative is something like painting before the plaster is dry or some kind of chemical mismatch. I do know you will have to scrape all the mucky powdery stuff away and start again, at least on those areas. Don't try to seal and prime and repaint until you know exactly what the problem is and how to fix it.

Congratulations to all of you. Its a wonderful platform to be on and you all are doing a great Job. My favourite Design Style is 'Minimal'. I just have this strong connection with simple, subtle and elegant things. Cheers:)