I figured that the only room that would meet the criterion for this at our place would have to be our "master" bedroom. In a Tiny Bungalow, we are using the term "master" very liberally here but we think that the transformation, a year-long process, is pretty dramatic. When we moved into the place, the room looked like this:
Though we found the decor to be pretty interesting, something inside me made me think that the house was ready to shed its pink carpeting, white shutters, white ceiling fan and Southwest border and other ecouterments.
Several months floor refinishing, paint stripping and re-staining, plaster repair, re-configuration of molding, new ceiling fan and a few new pieces of hand-made furniture, stenciling, and art and it was transformed to our first "finished" room in the house. 
