Ideally situated at the gateway to the Newport Peninsula, this charming modern rustic home offers an exceptional opportunity to enjoy coastal living in one of Southern Californias most desirable locations with added upside for investors and developers. Just one block from the beach and moments from the scenic Newport Harbor canals, this 3-bedroom, 2.5-bathroom property combines livability with outstanding potential. Set on a 2,375 sq. ft. lot with R2 zoning, the home opens the door to a variety of value-add opportunities, including a custom remodel, luxury flip, or ground-up development of a duplex or two-unit investment property. With very high ARVs (After Repair Values) for new or extensively renovated homes nearby, this property offers a compelling canvas for those looking to maximize ROI in a prime coastal location. The home itself features a spacious front courtyardperfect for entertaining or simply relaxing in the ocean air. A convenient outdoor half-bath, ideal for rinsing off after the beach or hosting guests, enhances the seamless indoor-outdoor lifestyle. Inside, the homes nearly 1,200 sq. ft. footprint is warm and inviting, with thoughtful details and a touch of rustic character. While the upstairs bathroom has been recently updated and the kitchen is outfitted with premium Viking appliances, theres also ample opportunity to add value through further updates or expansion. A two-car garage provides valuable off-street parking, and the location offers effortless access to the best of Newport Beachincluding top-rated schools, fine dining, vibrant nightlife, and luxury shopping at nearby Fashion Island. Outdoor enthusiasts will appreciate proximity to The Wedges world-class surfing and Crystal Coves scenic hiking trails, while beach lovers can enjoy the sand and surf just steps away. Whether youre seeking a full-time residence, weekend retreat, or a project with serious upside, this Newport Beach gem offers a rare combination of location, lifestyle, and development potential all while avoiding the congestion typically associated with deeper Peninsula properties.