Sleeping arrangements

Serenity
any mom's live in a one bedroom apartment with a toddler or newborn/infant? If so how did you decide about sleeping arrangements? I still have the 3-n-1 pack an play in good condition that I was going to use for the newborn and I am indecisive should I still co-sleep with my two year old or buy him a toddler bed? I may have to move some bedroom furniture around in order to fit in everything. What do you think? Any suggestions?