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From a plastic recycled juice or milk jug, wash out the bottle thoroughly. Make a mixture of muddy water with gravel and swirl it around inside the bottle and pour it out again. This takes away the smell and leaves a rougher, more natural surface on the inside.
Turn the bottle upside down and cut a circular hole on one side with a knife. (An adult should do this). The hole should be well above the neck of the bottle. The size of the hole determines the kind of birds you'll attract. (1 ½ inches a bluebird, 2 inches a tree swallow and 1 inch a house wren). Drop a few stones through the hole until they collect in the neck of the bottle. This will create a floor for your birds.
Make two small air holes above the entrance hole with a nail. Using coarse sandpaper, scratch all over the outside of the bottle so paint will stick to it. Paint the outside of the bird house a brown color so it looks like wood. While the paint is still wet take it and roll it on the ground so leaf and twig litter sticks to it. When it is dry, run a wire through the air holes and out the back or the birdhouse. Strap the house to a tree or post. Remove the cap so it drains.