That's what this couple did using reclaimed materials
12'x20' for the main part, then added a porch and bathroom (accessed from the porch) so it's now 18'x20' including that. Started in the fall of 2008, we built everything ourselves (mostly I helped my husband do the work) and estimate less than $7,000 spent. Used a lot of salvaged materials except for things like framing and 3 vinyl windows (which were a gift from a family member). Inside we used barn wood from a friend salvaged corrugated tin, and plywood for the walls. We have one big room (no loft) inside and in love having the sawdust toilet in a completely separate room.
We've redone a couple things, like the flooring - we used leftover laminate flooring from a friend that we ended up not liking about 5 years in and upgraded when it went on sale at a big box store. We've changed heating sources 3 times (wood > propane > high efficiency electric). We had a plate glass window on the south end of the house that broke twice (2 windows) so we framed it in and made it a solid wall instead. My point is, we like to improve it as we go depending on our needs. 🙂
Here is their flckr album of some of the process
https://www.flickr.com/photos/preciousroy/sets/72157608108817828/with/8339854652/
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