An idea popped into Dana Baruch’s head one sleepless night in 2012, upending the plans she and her husband, Mike Krell, had laid for their new house. At the time, the two were partway through designing a 2,300-square-foot, three-bedroom residence in the Bouldin area of Austin. But as Dana lay awake, she thought about their home-to-be and suddenly envisioned something more, a multitasking second level that could adapt to at least three configurations—guest suite, rental unit, and home base for their two sons, who were nearing adulthood—if Kevin Alter, Tim Whitehill, and Ernesto Cragnolino of Alterstudio Architecture could figure out how.

Up to that point, Mike and Dana had been methodically ticking off items on their downsizing checklist. It was time, they had determined, to move out of their energy-guzzling 3,500-square-foot house in the suburbs, where a car was needed to go almost anywhere. With one son nearly finished with college and the other soon to enroll, they no longer needed as much space as they did before. As Mike puts it, “We wanted to ‘right-size’ our life and reduce our carbon footprint.”

Dana, a life coach and educator, and Mike, a tech industry analyst and consultant, had also carefully calculated what they could afford: $220 per square foot.

The couple had discovered an L-shaped lot in a 1930s neighborhood within walking distance of downtown. Scouring the internet for architects, they’d come across Alterstudio and felt a connection with its warmly modern residential work. “Neither one of us grew up in a modern house,” says Dana, “but what appealed to us was the openness and airiness.”

The three partners were intrigued by the couple’s determination to start over. “I went to their old home,” says Alter. “It was representative of a very normative suburban world.” To try something completely different required a paradigm shift. “These people are very brave in a way,” he says. “They were interested in changing their lifestyle through design.”

The clients’ narrow lot determined their plan for a thin house clad in stucco, blonde cypress, and charred cedar. The entry would be in the middle of the building, facing a courtyard. To the right, the living and dining area would open onto a covered patio. The master bedroom suite would be to the left of the entry. Lastly, the upstairs was to include two bedrooms, a sitting area, and two baths.

And that was what had given Dana insomnia. “Our other son would be in college by the time the house was finished,” she says. She realized a second floor for the kids’ exclusive use wasn’t necessary. The next morning Dana and Mike asked the team if they could create a separate unit upstairs that they could rent for short-term stays when the boys weren’t at home. Dana recalls: “Kevin always said, ‘Your job is to let us know what the problems are. Our job is to come up with the solution.’”

“And the best solution,” says Whitehill, “was an indoor stair with secondary exterior access.” A second door was added to the left of the front door, the landing was enlarged, and the outside wall was bumped out to allow for the new stairwell. Now the rental is an important source of income for the couple. “Our goal was to pay the yearly property taxes,” says Mike.

Shop the Look

And while economy was a driving force in the design, it didn’t undermine aesthetics. Courtyards and floor-to-ceiling windows create a perception of luxurious space. For drama, a 48-foot wall clad in glittering black tile extends from the entry through the kitchen and out to the porch. “It looks extravagant,” says Alter, “but it cost less than ten dollars a square foot.”

Although the couple are thrilled with their new city life, they’re even more pleased with their new home. “We were interested in taking advantage of downtown living but we didn’t want to live in a high-rise,” says Mike. He and Dana credit their heavily personalized haven for helping them adjust. Alter agrees: “We ended up with something that has been, I believe, a platform for positive change.”

Project Credits:

Architect: Alterstudio Architecture / @alterstudio

General Contractor: Green Places

Engineer: Duffy Engineering

Landscaper: Westshop Design

Cabinetry: Austin Wood Works