This 10-year-old room addition was dilapidated and in desperate need of an overhaul, plus this tiny house didn't have much room for entertaining. Transforming the space into a lounge begins with tearing down the three rotting walls, rebuilding them, and covering them with stone. The ceiling drywall is removed, exposing a beamed ceiling, and "carpenter" windows are built and installed. Finally, a stand-up bar is built using galvanized metal and suspended shelves are hung from the ceiling.