This magical waterfront home sits right in magical downtown South Portland. Step out the door, and you're on your patio overlooking Portland Harbor. Turn right and you're at the center of a remarkably vibrant and compact downtown. Expanded and updated from its 1900s origins, this jewel box now packs an incredible amount of fun onto a gorgeous site. The main home offers three bedrooms, two full bathrooms, and a stunning view from nearly every window. The former carriage house now holds a beachy ''great room'' with panoramic water views. And every inch of the lot has been optimized, with a classic front porch, an elevated deck with awning, a giant patio, a parking area finished with pavers, clever storage options, even an outdoor shower. Inside the house you'll find an airy, coastal kitchen with nostalgic bead-board cabinets and light granite countertops. Open architecture links the kitchen, dining area, and living room in a row, with big views of the harbor. A surprise on this level is a bedroom and full bath, along with laundry. A mud room between the deck and kitchen offers copious storage. A restored Victorian staircase takes you to the second level, which has been transformed. One original bedroom remains, with a picture window facing the water. But the remainder of this floor is dedicated to a large, lovely primary bedroom, with lofty ceilings, good closets, and plenty of windows; and an updated bath with a gorgeous double vanity and tilework--and a water view, of course! But in real estate, location always gets the final word. The flow of indoor and outdoor spaces make the absolute most of the harbor's natural drama. To move from breakfast on the deck to your kayak on the shore is a matter of a few steps. The comfortable carriage house can accommodate patio parties, movie nights, sleepovers, studio, etc. And it's all just one block off the main street, and five minutes from Portland! Home is pre-inspected; flood certificate is available.