In a time of sliding home values, remodeling from three bedrooms down to one might not seem like the savviest way to protect your investment. But that's exactly what northeast Minneapolis resident Beth Gotting did when she decided to overhaul her 1923 bungalow.

With its clapboard siding and classic lines, Gotting's 1,000-square-foot house always had curb appeal. But it lost its charm once you walked through the front door. The chopped-up floor plan made the rooms feel about as spacious as an egg carton and cut the house off from its west-facing back yard.

"I'd come home and it was so dark," Gotting said. "I didn't really live in it. I just ate dinner and watched TV."

A renovation by Minneapolis-based RoehrSchmitt Architecture changed that.

The first order of business was to get rid of the two warren like bedrooms that restricted the floor plan on the first level and open up space for a sitting area and dining room. (The second-level master bedroom was left relatively unchanged.) RoehrSchmitt also bumped out that back of the house to expand the kitchen and bathroom, bringing the total square footage to 1,200. Raising the roofline on the addition allowed the addition of transom windows to admit light all the way from the kitchen to the front door.

The result weaves together the living spaces in an inviting and functional way.

"When people think about expanding, they often think they need another room," said the firm's principal, Chris Schmitt. "But it's really about making the space as open and flexible as possible."

Adding to that flexibility is a 400-square-foot deck that wraps around the back of the house. In warm weather, it's where Gotting entertains or relaxes after work and takes in the charm of her hilly neighborhood. A deep overhang and trellis provide shade and protect the kitchen from glare.

To make the project more sustainable, RoehrSchmitt chose durable materials.

"You hear about sustainability, but that quickly goes to bells and whistles," said Schmitt. "We focus on using durable materials so that you don't have to replace them."

The kitchen floor is made of cork, and custom Silestone Quartz countertops add a stylish touch to the Ikea kitchen cabinets. To improve energy efficiency, the mechanicals were updated and the attic and second-floor crawl spaces were reinsulated.

Schmitt says the project was deeply satisfying for both him and his partner, Michael Roehr. "It's an intellectual exercise to take a house like this and make it work," he said.

But he hopes it will grow into something more. "There's a lot of housing stock that will need to be redone," he said, referring to older homes throughout the Twin Cities. "They will need to be sustainable."

And Schmitt is confident that there will be a market for what is now a one-bedroom home if Gotting ever decides to move.

"We are confident if you put the house on the market it would be worth more because it's a much better house," he said. "The demographics of the world are changing and there is an increasing need for well-designed one-bedrooms."

Not that Gotting is thinking of leaving. She's finally happy in her home.

"It's a more social place," she said. "It used to be cluttered and dirty. Now I don't have an issue keeping it clean. I like to cook more, too. And the food tastes better."

Elizabeth Larsen, a freelance writer, lives in Minneapolis.