Opportunities like this rarely come along! This updated 4-bedroom, 2-bath beach cottage sits on an oversized 50' x 131.98' lot on the second ocean block in South Rehoboth Beach. Just steps to the sand and surf. It's nearly impossible to find a property this close to the ocean with this much space to enjoy now and incredible potential for the future. The home offers a charming three-season front porch, a rear deck perfect for dining after the beach, and a large backyard overlooking a small pond. Enjoy it as-is, or design your dream home, beach retreat, or rental investment. Two well-known local builders have confirmed that a pool or hot tub can fit in the backyard if the new home is designed thoughtfully. Currently, the property generates between $66,000–$70,000 annually through a mix of short-term weekly rentals and a long-term off-season tenant. There's ample parking with both off-street and street spaces available. Located on a quiet, tree-lined street, this home offers a peaceful setting while being just moments from the best of downtown Rehoboth Beach — from boutique shopping and gourmet dining to the Bandstand concerts, art shows, and beloved annual events like Sea Witch Festival, JazzFest, Gumbo Crawl, and the Rehoboth Christmas Parade. Whether you're looking for a turn-key beach cottage, an investment property with strong rental history, or a blank canvas for your future coastal masterpiece — 116 Laurel Street is a rare gem with endless potential.