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Looks nice.
I don't have a dedicated area atm.

Usually I sit on the couch, with whatever I need at the time in front of me.
That way I don't lock myself in the garage for the entire evening.
...

The ONLY things you NEED are what you have.

A dremel is OK for final polishing, and changing the tip style of a razor, but other than that you only need sandpaper (see my handsanding howto in this...