Perched on approximately one acre overlooking Vallecito Reservoir, this mountain retreat offers panoramic reservoir and mountain views and a rare opportunity to build equity in one of Southwest Colorado's premier recreational destinations. Sold fully furnished (excluding outdoor patio furniture), the 1,736-square-foot home offers 3 bedrooms and 2 bathrooms across a functional two-level layout. The main level includes a spacious living room centered around a cozy wood-burning stove, an adjoining kitchen with abundant cabinetry, tile countertops and a center island, a dining area, plus a bedroom and full bathroom for convenient main-level living. The kitchen and interior are ready for a refresh, giving the next owner an opportunity to update the home to their own style and taste. Upstairs, you'll find two additional bedrooms, a second full bathroom, and a versatile loft area ideal for a reading nook, home office, or additional sleeping space. Expansive windows fill the home with natural light while showcasing the beautiful views of Vallecito Reservoir and the surrounding mountains. A spacious deck extends the living area outdoors and provides an ideal setting for morning coffee, outdoor dining, entertaining family and friends, or simply relaxing and taking in the peaceful mountain setting. This is a property that rewards a buyer willing to put in some work. Cosmetic updates, flooring, and finishes throughout provide an opportunity to modernize the home and add value while starting with a location and setting that are difficult to replicate. Unlike many properties surrounding Vallecito Reservoir, the approximately one-acre parcel is predominantly flat and usable, providing room for outdoor recreation, gardening, additional parking, or future improvements. The lower level features a two-car garage with abundant storage space for mountain bikes, kayaks, paddleboards, fishing gear, ATVs, snowmobiles, tools, and a workshop. With year-round access, no HOA, a durable metal roof, and ample parking, the property offers flexibility and convenience whether used as a full-time residence, weekend getaway, or short-term rental. Located just 0.4 miles from lakeside dining and the Rocky Mountain General Store and only 2.8 miles from Vallecito Marina, you'll enjoy quick access to boating, fishing, kayaking, paddleboarding, canoeing, swimming, and endless days on the water. The surrounding San Juan National Forest offers miles of hiking, mountain biking, horseback riding, wildlife viewing, ATV adventures, and hunting opportunities. Nearby trailheads provide access to the Weminuche Wilderness, Colorado's largest designated wilderness area, encompassing nearly 500,000 acres of alpine lakes, rugged peaks, forests, and extensive hiking and backpacking trails. During the winter months, the area becomes a playground for snowshoeing, cross-country skiing, snowmobiling, and peaceful mountain escapes, while frequent sightings of deer, elk, wild turkeys, black bears, and bald eagles add to the experience of mountain living. For a buyer willing to bring some vision and make updates over time, this property offers the opportunity to create a personalized mountain retreat, full-time residence, or short-term rental in an exceptional recreational setting, all approximately 35 minutes from historic downtown Durango.