I picked up this red floral dress for $2 at my favorite thrift shop a couple months ago at their 50% off Presidents' Day Sale.
I removed the shoulder pads, waist ties, and sleeves. I shortened the hem, realized I cut it too short, reattached the fabric and added some decorative folds to disguise the mistake and shorten it the correct amount. And finally, I created side-seam pockets from the original sleeves.
More details can be found over at CarissaKnits!