My home is 24x36'. It's a log home but is a cape style layout with a loft. The MB is the loft. Depending on your area basement may be cheaper than 2 story. What size barn/shop is needed?

What size building overall are you thinking? Are you needing to use the building as a shop while you are living in it?
Are you planning a wood or tinned barn? Have you considered either moving a barn, or having Amish tear down and put back up a barn that you find?
A lot of people do a Tin Morton style quanset/shop and build living quarters inside.

I built a 28 X 48 barn, and am using it for rough living quarters while I build the house. I never really made it into living space, though. I put in a full bath, and I live in a camper inside of the barn. The barn itself is too big to fully insulate and heat.

Check out barnplans (dot) com for lots of barn ideas. I got my plans from them. It makes a handsome barn, in a variety of sizes.

Check out the "Tiny Home" movement. You can buy the plans and build it yourself. There are a bunch of them out there now.

The overall shop will be 40x60 all in tin. After we build our house the living quarters in the shop will be my husbands man cave/pool house, so it's not a complete waste.
Thanks for the help! Going to check out the websites now.

No personal experience, but I know families that did exactly what you propose. We live in a rural area and barn living is fairly common. Beautiful old barns restored with living quarters and new barns with all the creature comforts. Have you checked magazines about rural living?

Our plans are to do the same: build an out building with a small apartment to live in while the house is being built. The apartment will be fully climate controlled and will be my husband's hobby space after the house is built.

We want to do a small "studio" apartment to conserve money and tell ourselves to suck it up and survive it for the bigger prize! It is just the two of us, my husband will be retired and I will work from home as I have for years. The plan right now is to store our belongings in the building instead of paying for storage units. Still a few details to pin down on this idea. Our property is in South Carolina so the climate is moderate most of the year.

We have priced buildings by Morton Buildings, National Barn and Premier Buildings but have not gotten far enough into the details to do apple to apple price comparisons. At this point, we do know we had to rule out Morton. Their building is attractive but they think a whole lot of their buildings - very expensive.

It sounds like you will be in your temporary space longer than we will be. I've attached our studio apartment sketch. Good luck with your plans and keep us posted!

Here is a link that might be useful: Connor Homes' Alfred Stevens Carriage House