Interior designers are using Craigslist, eBay, and Target as designer sources. You can even find some rare and heavy discounted finds, like how this interior designer found two French-carved chairs with matching ottomans for $750 or another who found a room-sized Persian rug for $3,000, which would normally run about $15,000.

When searching for materials, you'll want to make sure that the furniture doesn't emit toxic chemicals into the air- older furniture with natural materials tend to be safer. Also, look for the structure of the furniture and consider the cost and time of reupholstering, sanding, painting, etc.

Here are some articles you may be interested in:
1) Craigslist and eBay become designer sources
http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20091011/LIFE/910110306

2) Thrift shopping with 'Design Star' finalist Nathan Galui
http://m.tcpalm.com/news/2009/jul/23/no-headline---fea_design_star_shopping/

Thanks for the tips -

I ended up going with just a minor brush up of the purchased materials. In the end decorating our large studio apartment was fairly cheap!

Here is a list of what we purchased from goodwill and their assocated prices:

1. Metal bedside table - 13.99
2. Desk - 19.99
3. Two-seater Couch in great condition - 24.99
4. Breakfast bar chair - 19.99
5. White 6' bookshelf - 19.99

Total: 98.95

So for less than $100 we were able to pretty much furnish most of our room. Honestly the only thing that I would not purchase at goodwill (but which they do sell there at VERY reasonable prices) is a bed and frame, mostly because I believe that you can skimp on.

In the future, you may be interested in ReStore- it's Habitat for Humanity's retail store with 1/2 price of remodeling materials. Would definitely recommend you to check it out if you're looking for discounted prices! http://re-store.org/