Nestled in the heart of downtown Pagosa Springs, this historic property presents an extraordinary opportunity to combine rich heritage with modern versatility. With its unique and coveted mixed-use zoning, this gem offers short-term, long-term, and commercial opportunities that are unbound by typical residential restrictions, making it a prime investment. The property features two distinct units, each offering its own unique allure. Ascend the stairs to discover the self-contained upstairs retreat, featuring two bedrooms, one bathroom, a fully appointed kitchen, cozy living area, and laundry room. Entertain or simply unwind on the expansive 300-square-foot deck overlooking downtown with breathtaking views of the San Juan Mountain range. Below, the ground floor unveils a spacious three-bedroom, two-bathroom sanctuary, boasting an open-concept layout seamlessly integrating the kitchen, living room, and dining areas. Step outside and enjoy your own private patio, complete with a fenced-in yard and a fire pit. This historic building underwent a meticulous transformation in 2014, where it was taken down to the studs and rebuilt with a comprehensive remodel and update, combining classic elegance with contemporary comforts.