Victorian character, flexible living space, income potential, and exceptional outdoor living come together in this beautifully updated 1900 home in San Francisco's sunniest neighborhood. Filled with period detail and thoughtful modern improvements, this single-family home has been tastefully configured into two separate levels, ready for immediate income potential. The bright, south-facing upper level features a welcoming living room with bay windows and a new gas fireplace. A formal dining room and bath are located just off the living room, creating an ideal setting for entertaining. From the kitchen, step directly onto the like-new, two-story IPE deck and enjoy true indoor/outdoor living, with plenty of room for dining, relaxing, and gathering with friends. This level also includes two expansive bedrooms and 1.5 baths. The lower level offers its own comfortable living space with two spacious bedrooms, a full bath, living/dining room, and kitchenette. Whether used for extended family, guests, a home office, or rental income, the flexible layout provides plenty of possibilities. Additional features include a massive wine cellar, generous storage, and a workshop area. The backyard provides even more outdoor space, with a mature lemon tree and a drip irrigation system. With its combination of Victorian charm, modern updates, flexible two-level layout, rental potential, and spectacular outdoor spaces, this is a home designed for both enjoying San Francisco and making the most of it. Steps from the 3rd Street commercial corridor, Muni-T line and multiple bus lines.