Mills Act-approved property! Erase the line between indoor and outdoor living at this romantically styled Spanish villa in the heart of north Laguna Beach's desirable Tree Streets neighborhood. A private and gated front yard leads to an impressive outdoor courtyard with raised concrete patio, colorful tiles and elevated planters. Two attached residences share this luxurious space, each featuring 1 bedroom, 1 bath, a living room, dining room and spacious kitchen. A detached 1-bedroom, 1-bath guest cottage is located in the backyard and is pre-plumbed for a future kitchen, adding to this property's extensive versatility. The cottage can potentially be an ADU and the entire property is Mills Act-approved. Encompassing approx. 1,762 s.f. of living space, the residences reveal recent upgrades while retaining period elements, creating a great ambiance for living and entertaining. Wood floors are featured throughout, and further enrichments include handsome fireplaces, remodeled baths with vessel sinks and rain showers, custom built-ins, elegant archways, indoor laundry in each unit, coveted parking spaces, and open kitchens with stainless steel appliances and ample counter and cabinet space. The property, which offers easy access to Main Beach, downtown's village, Heisler Park and more, makes it so easy to cater to flexible uses and different lifestyles. Enjoy the option of using the duplex as an income property, or live in one and rent out or work in the other.