Thanks for the input Kuba, Kyfe and Jennika!
I hadn't gotten as far as researching how much the renovation would cost, but thanks for the confirmation Kyfe that it won't be too much. I assumed it would be under $5000. We'll probably do some minor adjustments to the kitchen and the bathroom as well.
The condo is in an area with a huge stock of cheap and tiny 2 bed units. Literally a stones throw across from us is a double 20 floor building going up with many 2 bed floor plans around 600 square feet. So a 630 square foot 2 bed won't be out of place here, sadly.
Kuba, we can't really sell right now because we don't know how long we're going to be able to stay in Toronto. We might have to return to Germany once the baby arrives. If we sell now, we'd have to find a short term unfurnished rental, which probably won't be easy.
Jennika, yes, this is the Westside loft building. I won't go into my opinion of Urbancorp...
Based on what an agent has told us, we'd get about 30K less because the apartment is configured as a one bed rather than a two bed. That doesn't make sense to me since I thought pricing was based more on square footage. But either way, I guess all signs are pointing towards converting back!
Kuba, thanks for the houzz.com suggestion!