We really love this idea when space is limited. How do you give two kids their own sleeping space plus a playroom out of one room? Easy, just convert the closet.

This great room makeover spotted over at Design Sponge really solves lots of space problems. By taking over an odd-shaped closet and building in a sleeping platform, you get two "bedrooms" from one small space. The rest of the room now serves as a shared playroom. All the clothes can go into a dresser or wardrobe and you won't even miss the closet. See the rest of the house over at Design Sponge.

Image: Design Sponge