One amenity that's often missing in small homes is a real laundry room with space for washing and drip-drying delicate items, a countertop on which to fold clothes and a spot to do the ironing. Creating working spaces for these activities takes some real imagination.
A handy wall-mounted fold-out drying rack from The Container Store is a terrific and inexpensive solution for hand-done wash. You might install this in a bathroom or consider hanging it in a closet or back porch. You might even entertain the idea of mounting such a rack behind a bedroom door.
People often hand-wash delicate garments in the bathroom sink and then allow the garment to drip initially in the shower. One of these racks allows the user to conveniently move the item to complete its drying cycle in the closet or from the back of the bedroom door itself.
Since few fabrics require ironing, get rid of your full-size ironing board. Replace it with the countertop variety that can easily slip into a closet, the space between cupboards or under the bed.