I've been working from home remotely 100% of the time for five years now. I'd say a dedicated space for the majority of the work is a good plan, although it's also nice to grab the laptop and go out to a cafe, or work on the porch on a good day.

My set up:

300 square foot room, dual 24" monitors on an 4'x6' drafting table + stool for sitting/standing. Desktop, plus battery back-ups (desktop is set up to automatically boot back up if there's power loss), two internet providers for fallback, static IP from the primary ISP to the desktop so I can easily remote in while on the road. Synced laptop so I can just grab it and go with my current work-state already saved.