Perfectly positioned at the end of a quiet cul-de-sac just a short walk from Gate 5 (with fantastic mountain biking and hiking trails), this custom home sits on a half-acre lot overlooking a greenbelt, Martinez Canyon, and the northern peaks of the South San Juans. The moment you walk in, you're greeted by soaring vaulted ceilings, a wall of windows, abundant natural light, and an open-concept living area centered around a two-sided gas fireplace. Large French doors open to an incredible outdoor living space—an oversized deck nestled among mature Ponderosa pines with sweeping mountain views. It's the kind of place you'll spend your mornings with coffee and your evenings watching the sunset. The main level also features a spacious primary suite with private deck access, creating a true main-floor living experience. Downstairs is where this home really stands out. There are two separate living spaces, each with its own exterior entrance, creating exceptional flexibility. One is a private bedroom with a full bath, while the other is a fully equipped efficiency apartment (bathroom and full kitchen) with both interior and exterior access, keeping it compliant with PLPOA requirements. Whether you're looking for a long-term rental, a short-term rental (subject to local regulations), guest quarters, multigenerational living, or a home office with private access, the possibilities are outstanding. Even better, one of the downstairs spaces is currently occupied by a long-term tenant, providing immediate income potential for the next owner if desired. The owner also invested in soundproofing between the main and lower levels, adding privacy and comfort throughout the home. Two minutes from National Forest and 5 minutes from uptown shopping. If you're looking for mountain views, outdoor living, and the opportunity to offset ownership costs with rental income—all in one of Pagosa's most convenient locations—this home deserves a closer look.