GET THAT SHIT OUT OF THERE!!!
Look, I know you think I'm full of shit, KB, but I had that set up for years (I've been fully self employed for over four years now). This is the first year I moved my desk and shit out of the bedroom, and had a separate "office" and the mental difference it's made is 1000 fold. When you work from home, and have that workspace in your bedroom it's exhausting.
If you have to create a separate area in your living room or dining room, do it. But get your office out of the bedroom, mentally you're NEVER leaving work.
The other thing, it gives you more of a "I'm going to work feel," when you have the workspace separated.
Additionally, any space you give over to work is tax deductible. If you actually have a separate room/space you can deduct the space of that room (even if it's an apartment).