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When not in use as the headboard, the large redwood slab folds down to become a desk.

Another view of the master bedroom.

Consider realistic DIY limitations. If you’ve never delved into plumbing or electrical work before, a major renovation is usually not the right time to get started, as this type of work is best left to professionals. Even something as seemingly simple as demolition work can quickly become more complex if you are replacing plumbing or electrical fixtures.

The wood-burning fireplace on the main floor adds so much ambiance that Shelley says she finds herself wishing for cooler days so she can light it up.

The workshop interiors emphasize function, with polished concrete slab floors and 35-foot-high ceilings to accommodate large projects and gatherings. The disco ball, set to spin via a smartphone app, can be lowered with an industrial winch and is visible from the overhead studio suite through a peek-a-boo window.

Architect Jai Kumaran and his partner, Lindsay Merkle, transformed a badly neglected ridgetop property in Scappoose, Oregon, into a retreat, completing a 3,000-square-foot prefabricated workshop and studio suite as the first phase of a larger planned creative compound where they could live, work, and gather with family and friends.

The pair also designed the upstairs bathroom’s eye-catching geometric vanity, which pairs elm with a quartzite countertop.

The couple often relax by their vintage Jøtul stove—“our dream one,” Audi says—purchased from a neighbor. The rocker is a family heirloom, and the armchair is a roadside find.

New windows and their views of the trees lend a treehouse feel to the interior, which is wrapped in wood and has heated slate floors, as well as a Jotul stove. “It's a little bit lighter, a little bit more fun, but it still has a richness that goes with the house,” says Pellegrini.

The window niche now has a freestanding Jotul stove on a slate floor.