My maternal grandmother lived with my family while I was growing up. It was great for us kids: extra love, attention and care. Depending on the house and family, it can be a great situation.
I've turned the far end of my long-ish rectangular living room (which was previously underutilized) into a office area with a nice desk and some built-in cabinets. I find I still need a designated and organized space to keep files and work-related stuff.
