This couch isn't really ugly, but it's not the best-looking sofa I've ever seen. That being said, it's pretty much the best couch you could hope to have in a small space. That's because you can pull on the arms and turn one sofa into three pieces of furniture -a small bed, a chaise lounge and an armchair.
If you don't want to have a ton of furniture taking up space but wish you could have seating when you have people over here and there, it's the ultimate solution.
Learn more about the design over at Homes and Hues: One Couch With Four Seating Options
But I'd call futons the best option. Can be very comfortable in both seating and laying positions, disassembles into pieces that'll fit in a small car, and wood (not metal!) frames are durable enough to last many years.