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It's like camping. It's lots of fun for 2-4 days, after that it's like that was fun, I'm about ready to go home now.
That is essentially a shed with some insulation. 3 years to build a shed? Small houses are fine, but I don't see what allure is to not at least make something 300-500sqf. It's not like the cost is much higher, and the ease of doing "two things" at once becomes a lot easier.
That or buy a simple trailer. A used trailer doesn't cost that much, and it would be larger and already built..
http://www.tinyhousetalk.com/tiny-house-living-reflections/