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Bubba_MoCity wrote: 3 levels! - that will be a BIG house.
You will have trouble splitting landscape timbers with just a circular saw. I could make a jig that would allow that, but without a jig I would not attempt it - too dangerous. I would not want anyone hurt doing what should be a fun project.
Depending on your budget, there are a number of options for a table saw.
1) table top $100-150
2) contractors $200-500
3) cabnet $800-$$$$ average about 1500
Those are listed in price and functionality from low to hi.
I just have a table top on a stand, but have added several safety features - better fence, magnetic featherboards, etc.
Best improvement - top-of-the-line saw blades.
Home Depot and Lowe's have hybred saws - better than a contractors saw and less than a cabnet - price is not much more than a contractors saw, but much better features - (I want one).
Building a structure that big - I can agree with a 2x4 frame. I do not think stairs would be needed, but if you wanted to add ramps it would be easier to design and build.
Probably will need some entry cover - could be a porch, or perhaps a "doggie-door" - I would cheat and make one from thin lexan and add small brass hinges - no rust - to swing from the top - allow door to swing both in and out. Walmart has some litterboxes that have such swinging doors, but they hang on the plastic cover - you will need something more substantial out doors.
Now for a picture or two of my tiny cat house.
A friend gave me an old desk that was in poor shape - I salvaged the wood. Bottom and top are 3/4 ply, sides are 1/4 ply. Corner supports are 3/4 strips - all screwed together - no nails. Lined bottom and sides with reflective covered foam - attached with silicone, then glued sheepskin to foam.