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Step-by-step build — 9 steps. Also available as a print sheet.
Cut the bottom piece from the 1x12, using a circular saw or jigsaw to cut the angled front tongue.
Cut the four outer wall pieces on a compound miter saw set to 15° off square. Cut the doorway out of one wall with a jigsaw and sand any rough edges. Attach the walls to the bottom 1x12 with 2" self-tapping screws and glue.
IMPORTANT: read the couch sizing note in the build-the-couch step before proceeding here — it affects this step's dimensions. Cut the inner walls on the miter saw at 15° off square, sized to whichever living-room width you settled on (11-1/4" to match a 1x12, or 12" for a better doll fit). Cut the two loft-area pieces on the compound miter saw with square cuts this time. Attach with 2" self-tapping screws.
Cut the back plywood panel with a circular saw or table saw. Mark out the windows and drill starter holes with a bit larger than your jigsaw blade, then cut the windows out — the vertical lines between panes aren't necessary and are easier to skip. Attach the back panel with 3/4" brad nails.
Attach the wheel supports to the bottom with 3/4" pocket holes and 1-1/4" pocket screws.
Cut the wheels from scrap material, or use store-bought wood rounds or wheels. Drill holes and bolt each wheel to its support. Once the wheels are on, cut a 1x1 or dowel piece to length and screw it to the front tongue so the whole house sits level.
Build the back-deck railing from 1x1 material. These pieces are genuinely difficult to nail or screw — hot glue is the practical way to assemble them.
The couch is designed at 11-1/4" to match a 1x12's actual width, letting it turn either direction in the living room — but a 12" fashion doll is closer to 11-1/2" wide, so you may prefer a 12"-wide living room and a 12"-long couch instead. That trade-off means the couch can no longer sit against the end wall, so decide before you cut the inner walls in the earlier step and use the same width both places. Build the couch by gluing and nailing the legs to the 2x4 base, then gluing and nailing the 1x2 top to the 1x4 seat. Join the two assemblies with a small hinge to make it fold flat.
Sand every edge, then paint or finish as you like. Additional furniture plans for the rest of the house are available separately if you'd like to fully furnish it.