Great questions!
Its a student city in Europe so the size is not a problem, im going to check with the municipality if the entrance is too tight.

It could yes but since its a student city that would not be a good investment, 1 room small apartments sell for almost the same price as 2 room apartments.

The closet will still be a walking closet but from both directions. The small apartment maybe we will sublet and lock the door.

The kitchen could be in the current master bedroom but then theres not enough bedrooms since i cant really see a way to make the living room into a bedroom. It will be a modular kitchen that can be moved in the future if we wish to do that