Make your own fireplace.no chimney required. Use an old mantle structure and have several candles serve as your "fire." This lovely vintage room lends itself perfectly for this idea well. White mantle and mirror, candles and lanterns.
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Guest room- Create a nook like this by suspending curtain rods from the ceiling. Put a daybed to be the bed in a small bedroom. Closing curtains allows you privacy to maximize all space for lounge and storage- its ok to have chairs right up to the bed!