Charming beach bungalow with lots of potential and a possible ADU, all on a good size lot within a short walk to the beach! The main living area of the house is 846 square feet with 2 bedrooms and a bathroom. The kitchen has been nicely updated with stylish cabinetry, newer custom appliances and a large kitchen island. In addition to the main house there is a 359 square foot guest area attached to the back of the single car garage. This area was built before the main house was built in the 1950's and has an existing bathroom, a shower and is plumbed for a kitchenette. This guest area is not included in the permitted main homes square footage. There is great potential for this area to be converted to a separate living space, a granny unit or possibly a vacation rental. Spacious 5,000 square foot lot creates a large front and back yard with patio, perfect for entertaining and enjoying the wonderful coastal Morro Bay climate. A second story addition could provide a beautiful view of Morro Rock, the ocean and the hills to the east. Access to the beautiful Morro Strand State Beach is located just 3/4 miles away. Also within walking distance is Spencer's Fresh Market, several great restaurants, Del Mar Elementary School, Morro Bay High School and several parks. This home is looking for the perfect new owner to give it the love it needs to bring out all of its great possibilities. Check with the city of Morro Bay for more info on suggested improvements.