Lilly lives in our walk in closet, and calls it her "Tiny Room". Our apartment only has three bedrooms, one for Eli, one for my Mom, one for us and a nice big closet for Lilly. She hangs out in there, reads books in there, builds legos in there and goes in there to cry when she doesn't get her way. It's kind of sad, but funny at the same time! She's at an age where she doesn't really understand, so I don't think she'll be damaged. In fact, she loves it. If only it was under the stairs, then she'd be a girl Harry Potter!
3 months ago