The second bedroom of our house is only 8 feet wide and 13 feet long. In spite of its size, we still needed it to function as an office/craft room and a guest room that would sleep 2 people. The major projects here were pulling up the carpet and painting the walls light gray and the ceiling blue. Then we found the perfect sofa bed for small spaces and built a wall shelf behind it since there wasn't room for end tables.
The whole transformation cost about $800. The only significant expenses were the new sofa, wall shelves and paint, as we took the rest of the furniture from other parts of the house.
For more photos of the space, visit Little Victorian.
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(Images: Christina Orleans)