Because the description says "bungalows are roomy and resistant to weather", you need to have maxed out skill for everything. The place where a small bungalow would fit is West Beach on the second island, or, if you can reach it, the Volcano Overlook, where you can build three Mansion Bungalows. I suggest building a Mansion Bungalow, then design, on paper, a big extension. Then transfer the design on the Overlook. Hope it helped!
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