Futon, sofa bed or Murphy bed (or some other form of convertible furniture - there are some clever options available)

Or sleep in the courtyard ;)

This isn't tiny. Looks about the size of my first flat. I would use a day bed or pull out couch.

I can't find pictures. Where are they?

Oh. It looks like it's off the market now, so the pictures were removed. I guess someone figured out how to fit a bed in there!

It's a cute compound. I looked at the one lazy posted for my mom.

Found the pics here :http://www.trulia.com/property/3200735275-220-Irvine-St-T-Santa-Fe-NM-87501#photo-1

Can you add on such as a second story? Or, is it located in a protected/conservation area?

They are condos, so no adding on ;)

No room to add - it's a cluster of tiny adobe shacks.

Is there a seating bench in one you are considering? If it is wide enough, a perfect place to put a pull out bed. Find a good one for comfort. Look at pics for temporary bed setups, may find a lot of ideas.