Love the ceiling. Want to cover my stipple with wood! You can get away with some very trendy looks with a rustic ceiling and I think by mixing styles you can get something more time resilient. I actually came across magazine clippings I had from 12 years ago that are fitting today - black windows, Asian influence, rustic wood, simplicity, a hint of industrial. White would be good, you could also go darker or even a different wood finish. Some open shelving would be nice if you can have open storage and spare some space. I think your living room has a lot of potential if you redo the fireplace and flooring. Look at scandi and wabi-sabi style for inspiration.

Begin by removing the fabric curtains and balances. Budget so you can replace the floor not only in the kitchen but the entire space. Remove or paint over the wainscoting to unify the walls. Tile over the fireplace with oversized solid matte tiles (floor tiles would work).

Here is a layout for your family room. I'm not sure you can keep the existing reddish flooring. I have shown a floor, maybe wood that would be in a medium shade.

This shows a large area rug with a sofa, two lounge chairs & accent tables.

@BeverlyFLADeziner @Felix Pradas Thank you so much.....Love all the ideas and definitely will be changing the flooring for the entire place (maybe thinking something medium shade like suggested or one shade lighter than the ceiling ).

@sansira - I was not aware of wabi-sabi style, it is good to know. Adding open shelving is a great tip! Thank you!

Very excited to get in there and start.

following...

I was thinking that your kitchen cabinetry would lend itself quite will to a modern look if you changed out the hardware and painted. As far as your living room I would strip it down to the essentials including removing flooring to see what you like and don't. It's kinda hard to see exactly what's going on with the built-in's but that area needs some thought for sure. Would definitely keep the ceiling and the beams as they give the room quite a bit of character. Good luck!

Wow. This home has so so much gorgeous detail. Lot of potential here! Love it!! The ceiling details are awesome. I’d paint them white in the kitchen. And do blue cabinets, maybe a wood island. Can you open up some walls?
For the living room I’d add wall molding to the top half of the wall. And paint the entire room one color. Including those built ins if your keeping them. I’d have the tv over the FP. And a big cozy couch.
This is an amazing project!! Love it. Can’t wait to see how it turns out.

It looks like the red flooring might have to go. Here are some ideas on layout and how you might update your space.

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