Creating a Balanced Live-Work Space in Small Carriage House?

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Q: I just moved into a new rental, a 1920's carriage house. It's got character out the wazoo and I'm totally loving it. Poor student status means hand-me-downs or thrift finds to work with for furniture, but I'd like to make this small room (12x13 ft) work as a functional and non-awkward combined living and study space. Apartment Therapy is my favorite resource for inspiration so I thought I'd pick your creative brains! Please help me work with (most of) what I've got? How would you arrange it? Thanks all!

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Regina is an architect who lives with her husband and children in Lawrence, KS. As a LEED Accredited Professional and longtime contributor to Apartment Therapy and The Kitchn, her focus is on healthy, sustainable living through design.