Maxwell, Sara and their baby live in this 265-square-foot home.

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Maxwell and Sara Kate Gillingham-Ryan live with their baby Ursula in a 265-square-foot home, and they say they haven't found a place they'd rather be. Maxwell and Sara live by smart design strategies to maximize their tight quarters.

To make the space seem bigger, Maxwell had all the walls painted white. He also replaced the closet doors with curtains. "It allows us to light the closet from within, and when [the curtains are] pulled, you get this beautiful ambient light shining back into the room. You can't do that with doors," he says. Maxwell also ditched the doors to the bathroom and bedroom and replaced them with white felt sliding doors.