He did build quite a few small cabins and has remodeled several homes in the past.
A little, 400 sq ft home would not be impossible to build, and you can actually get a lot of your framing lumber and such from free posts on CL. Believe it or not. All the lumber we used for the coop (2x6 treated lumber), the shiplap, the boardwalk, etc was all free from CL. The only thing we had to buy was the hardware cloth and the tin for the roof. Oh, and nails and a new motor for his table saw...
But, you know what I mean.
The biggest fly in the ointment of building your own small home is the stupid state requirements. Getting the plumbing, electrical, etc all signed off. There are a lot of small home plans that are very easy to follow and give you a very cute, very comfortable small home. They are
small. But, considering it's just you two, it should be more than enough room. Mike and I manage in a 32' sailboat for quite some time and were very comfortable. It's just a matter of learning to work with the space you have - which is sounds like you already do if you are living with roommates.
Here are some of the plans Mike and I were looking at before we found and fell in love with the house we now live in:
http://www.tumbleweedhouses.com/ (these guys are great - they even give you the estimated cost to build one of their designs)
http://www.ideabox.us/models/cubes/
http://www.kithaus.com/ (very small - most would not find them enjoyable for homes; but, we loved the idea of them. And, you can expand them over time as you can afford them. You need to consider composte toilets and induction heating units or something for cooking...but, yeah)
http://www.tinyhousedesign.com/2011/07/15/introducing-the-pioneers-cabin-16x20-tiny-house-plans/ This was one we really liked. You'd have to build it yourself; but, the plans are easy to follow.
But, anyway - It's possible to build a fairly small house on a tiny budget. The problem is, having the land to build it on. And, just so you know, especially here in TX....you can build one of these small houses in a short period of time. If you start construction in April, you could finish by the end of July. Which means, you can live in a tent while you are doing it. A friend of mine did exactly that in Denver. Yes, she lived in a tent while building her Tiny House....different months; but, same idea. Not a lot of fun, and you're more than happy to see the tent wadded up when you're done; but...