Wish you lived close to me. We're buying a new sofa and our old one is a sleeper sofa--was only used a couple of times and the pull out is like new. Maybe put it up on freecycle or craigs Llst in your area. There must be others like us...
Your best bet would be to go the futon sofa route - which is a sofa frame of wood/metal with a pad that folds out - that's the usual route nowadays. Otherwise look for a used sofa bed to redo- but they get cranky with old age - so, beware.
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