I live and work in an apartment.
Most of the week days it's quiet so i can get things done. But as soon as my upstairs neighbor arrives from his day job, i have a hard time to concentrate into my work. I'm very noise sensitive. Even if i listen to music during my work (loud enough) i hear the vibrations from upstairs. The neighbor's sons play rockband on the wii i think and i told them to lower the sound several times but there's nothing i can do about it. I even asked the landlord to warn them and two weeks later, the noises are back.
It's a pretty shitty apartment but it's surrounded by trees and near of everything (grocery store, train station, etc) and that's why we choosed to live here. We tought it would be quiet. We hate the city. But we need to be in the suburbs to meet with the clients in the city by public transportation (we hate cars).
Where do you work if you're freelance?
Rent is high, but I see it as an opportunity to find a great way to work that will provide even more surplus/tangible income when I move to somewhere cheaper after school.
I focus on speed of production and finding several small gigs a day. As a designer, it's a lot easier than being a programmer in this regard; lately demand has been at $400 a day but I am only willing to supply $200-300. I don't keep a backlog either, so my rates still have room to grow. This lets me cover my bills and still keep my main focus on my startup (an iPhone app currently, but I have several projects in line, such as http://www.epictee.com).
Here's my setup. My bed is immediately behind my chair: http://i40.tinypic.com/e69085.jpg