Rex has a great idea--above! Remember--you don't have to circle. Having a turntable will give you the ability to turn the engine any way you need it to face. My question is: "Does it have a front coupler?" All the better if it does. If not, no big deal, the next loco I'd buy if I were you would be a switcher engine with working couplers on both ends. You could build a shelf layoutv along a bedroom wall and spend hours switching, rearranging cars for pickup-delivery. You could make a game of it by making 3 x 5 cards with each piece of rolling stock having it's own card. Draw a card and place that car in a a pick-up track. Draw 2nd card and place that car second on so on. I have seen great layouts that are 8 feet long and 18 inches wide. Don't limit yourself thinking you don't have room for a layout. These days you can buy a 2-inch thick piece of foam...cut a 1.5 foot wide section off and build a switching layout on it. You could move this easily; even out to your garage for storage. Bring it in to run it in cold/hot weather.
Everyone seems to think you need a basement for O scale. You don't.
