Lake Michigan Cabin Makeover

Northwest Indiana residents Paul Schwab and Stephen Warner faced a daunting task in updating what they call their "kooky cabin" in Michiana Shores, a summer resort area built in the 1920s and '30s for well-to-do Chicagoans.

"The house was built by a local craftsman named Josh who never used a plan," Paul says. So a gorgeous fieldstone fireplace was blocked by a staircase, first-floor ceilings soared to 15 feet but upstairs roof-lines were so low the windows touched the floor, and the only access to the porch was through a bathroom.

They embarked on an extensive rehab in 2005 with two goals in mind: bringing the old single-season home up to code and staying true to the neighborhood's architectural style.

Click through our slides to find out how these homeowners produced a stunning lakeside home that preserves the past with modern flair.