In the summer when I hang my laundry outside I fold the sheets as I take them off of the line and I do the same thing in the winter when I hang them in the basement. I don't put them in the dryer. They go right back on the bed. Only have two sets.
For the fitted sheets as I take them off of the line I fold the bottom up and pin to the line and then undo the clothes pin and fold them in half as I undo the next clothes pin.