The main limitations when it comes to building are structural support and your own imagination. Structural support determines how likely your place is to fall apart. The closer to ground the respective build piece is, the more stable it is basically. When you are building, the pieces that get highlighted in blue are grounded, perfectly stable. Then green pieces are not grounded but are still structurally strong. Yellow pieces are beginning to become unstable and may not support additional attached structures. Red pieces are highly unstable and basically an aggressive fart from falling over. Support beams can help with this stability, especially in larger builds. Roof pieces stop rain (and provide shelter), and the slanted beams also count as roof pieces but the vertical and horizontal beams do not. The order of placing these pieces does not always matter if you aren't having stability issues, though I personally enjoy making a frame of the building, slapping a roof on it to keep the rain from causing any damage, and then take my time filling in my walls as I like.

Fire can also be a concern in building though. Fire is needed to get the rested bonus, and to cook so you don't die as easily, and to actually sleep in your bed (dont need a fire to set the bed as a spawn point), but fires also have smoke physics and if you have a fire inside you do have to consider that or risk suffocating yourself with smoke. If you keep your fire outside then the weather may extinguish it though. In a small enough hut that can work, especially if you just slap a porch over your fire to help with the rain issue but most bring their fires inside and just make chimneys (or large enough rooms that it can't be fully filled with smoke anyway). Fire also can not be placed on wood floors, but placing on directly on the ground or on the stone structures you eventually gain access to works just fine. In my larger houses i personally enjoy having a central fireplace where my chimney is a large support beam functionally, but how you want to design your place is entirely up to you, as long as it doesn't crumble thanks to the stability.