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With the help of California Closets, the homeowners maximized every square inch of space with shelving, drawers, and a countertop area for placement of various small appliances like a microwave, coffee maker, and tea kettle.

The 500-square-foot home is designed for empty backyards in Silicon Valley. Abodu imagines the units serving as rentals, or housing for recent graduates or aging loved ones.

Be selective about splurging. One of the hardest, yet potentially most satisfying, parts of staying on budget is learning where to save and where to splurge. There are certain items or pieces that are worthy of spending more on, whether it’s a sofa that will last you a decade or kitchen countertops that will really help improve the value of your home. Your contractor or other design professional can advise you on locations or pieces where a higher-quality product is important versus something more basic.

Thoughtful details include leather cabinet and drawer pulls.

A wood sleeping berth with built-in storage helps to delineate the bedroom from the living area in the open-concept cabin.

A wood stove set on a raised hearth acts as a focal point between the living and sleeping zones. Built-in nooks provide storage for firewood.

Instead of plaster, Out of the Valley finished the walls with a natural clay render that gives the cabin an earthy quality.

The larch veranda has no railing, so it appears to float in the lush meadow.

An organic palette allows the cabin to blend into its natural surroundings.

The minimalist design approach allows the materials to take center stage.

To access a secret play area in the 2 Bar House by Feldman Architecture, children clamber up climbing holds purchased from a local sporting goods store.

The entire home is wrapped in pine tongue-and-groove, which matches the original finish on the ceiling.

The drop ceiling was removed to make the kitchen feel larger, and Troy RLM kitchen lights were installed above it.

The large window that punctuates the front facade "is called a flower window in the Netherlands because of its depth; the ledge is a place to put flowers," Collaris says. "In this case, it's an extra place to sit in the living room."

One bathroom features a ladder that leads up to a yoga studio.

In the dining area, Cassina chairs hug a Henrybuilt table. The kitchen features a concrete counter by Ryan McPhail and an Elio faucet by Dornbracht.

The entry courtyard now contains defined seating areas for additional outdoor living spaces.