There are definitely some pros and cons of working from home.
For me, I have found that I struggle more with pulling myself out of work and back into home life, rather than having issues of being distracted at home. I don't have children, so that would certainly cut down on the distractions!
Here are some of the things I do to make working at home "work" for me:
1. I get up and eat breakfast with my husband, to get me started on the mental path that it's time for work
2. I schedule my work tasks in Outlook (each project gets its own block of time and has its own reminder pop up)
3. I clearly communicate to my husband when I will need to work after dinner or when I will be available after dinner
4. In my previous job, I had a separate computer for work and for my own personal use. So when I was done with work, I just shut the lid of my work computer and "quit" email on my phone so that I wouldn't be distracted by the "dings" and could be focused on home life. In my new job, I only have my personal laptop, so I definitely bleed work into longer hours than I would like.
My job requires A LOT of hours, so my schedule is probably not helpful to you. Tonight is actually an early night (9:30) in terms of finishing work! :)
In terms of my apartment setup, I live in NYC, so we are pretty tight for space. We don't have a room to use as an office. I prefer to work on the couch (it's more comfortable than a dining table or a bar stool), so I purchased a really great lap desk, and then I have my end table (with a couple of drawers) set up to house the "stuff" I need that I'm currently using. Then, in our dining area, I have my printer set up on a 2-drawer rolling file cabinet where I house printer paper, ink cartridges, and all of the other necessary office supplies.
One bonus is that you can deduct a portion of your bills on your taxes (if you itemize) when you use a home office.
Good luck!