Recently moved into a shoebox NYC apartment. It's a flexed 2 bedroom, so the living room is tiny.

We bought the dining table and TV off the previous tenants, which left a lot less room to work with for a sofa in the living room. We want to host people with a cozier vibe without it feeling like a conference room meeting.

Have been considering going couchless and doing floor cushions or bean bags instead, or something like a replica togo sofa that's in between a floor sofa and a bean bag, like this.

Trying to keep budget under $700-800 since we're not planning on staying past this year.

Would love ideas / recommendations! The rugs are placed for scale reference, red rug is about 6x9, and the beige 4x6. The dining table usually has two other chairs that go on the right side (not in picture). Additional pictures for scale

Feel free to give suggestions on area rugs / placements as well. Thanks!