How We Turned a Tool Shed into an Income-Producing Cabin (And How You Can Too)

When I first looked at my old tool shed—a weathered 10x14 structure tucked between the pines—I saw more than just dusty shelves, old grease cans, and leftover lumber. I saw potential. That little building became one of the most meaningful projects I’ve taken on at Vida Bonita Pecos: the transformation of an unused space into a cozy, income-generating tiny cabin. And the best part? You can do this too.

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No, I didn’t do it all by myself. I had two trusted workers who brought skill and craftsmanship to every cut, tile, and screw. But the vision, layout, and finishing touches came from me. I guided the design, made material decisions, and shaped the guest experience from the ground up. It was a true team effort—and the result is something I’m proud to share and even prouder to offer to guests.

A New Purpose for an Old Space

     The tool shed wasn’t doing much—just taking up space under the trees. But in a place like Pecos, where travelers crave unique and peaceful lodging, I realized it had potential. Guests today don’t just want a place to sleep; they want character, charm, and connection to nature. So, we rolled up our sleeves and got to work.

Using What You Already Have

One of the biggest lessons from this project? You don’t need a massive budget to create something beautiful. Most of what we used was salvaged, recycled, or leftover from other renovation projects:

• Tile we didn’t use in other cabins became the new flooring.

• Windows and the door were repurposed from our Crestview Cabin remodel.

• Furniture came from storage, resale shops, or was refurbished on-site.

For the walls, we split standard 2x4 lumber in half to line the interior with a warm, rustic feel—cutting our material cost nearly in half. Every detail was chosen for practicality and charm.

Guided by Experience—and a Lot of YouTube

I’ll be honest—I’m not a trained carpenter. But I do have an eye for detail, and I’ve developed a real understanding of what guests want by hosting them here at Vida Bonita Pecos. I also relied heavily on YouTube University, watching tutorials on everything from cabin lighting to creative plumbing solutions.

But where I lacked hands-on experience, my two workers stepped in with skill. Under my direction, they brought the tiny cabin to life, piece by piece. It was their craftsmanship, combined with my design and hospitality vision, that made the cabin truly special.

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What Guests Want—And We Delivered

As we built, I kept asking myself: What makes a cabin stay memorable? Drawing from my own travel experiences, I made sure to include:

• A deck with a forest view and a glimpse of our chickens, turkeys, and ducks.

• A picnic area with a table and a fire pit that includes a grill for outdoor cooking.

• A thoughtfully designed kitchenette with a Keurig, microwave, toaster oven, and mini fridge.

• A small table for two, a cozy full-sized bed, and a soft couch to relax after a day outdoors.

There’s no indoor plumbing, but we included a clean nearby outhouse and a chamber pot with a pneumatic pump sink for convenience. And coming soon: a wood-burning stove, which will make it perfect for winter stays.

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From Shed to Short-Term Rental: Why You Should Consider It

Converting a shed into a guest cabin might sound intimidating, but it’s a realistic and rewarding project—especially if you’ve got a little help, some recycled materials, and a bit of vision. Here’s why it’s worth doing:

• You’ll create a new revenue stream with low overhead.

• You’ll learn valuable skills or deepen your understanding of hosting and construction.

• You’ll repurpose and reduce waste, keeping your costs and environmental impact low.

• Most importantly, you’ll offer guests something truly memorable—a handcrafted experience they can’t get at a big-box hotel.

  

Start with What You Have

This project wasn’t born from perfection. It was born from possibility—from a shed, a few recycled materials, some trusted workers, and a deep desire to create something magical. I didn’t know everything going in, but I had a vision and people who helped me bring it to life.

If you’re sitting on an old structure, unused space, or even just a big idea, I encourage you to start. Ask for help. Learn what you can. And most importantly, have fun with it.

And if you ever want advice or want to tour what we built, stop by Vida Bonita Pecos. I’d be glad to show you how one little shed turned into something people love.