Steps from stunning Dallas Road waterfront, this gorgeous heritage-designated James Bay home offers a rare choice: two one-bedroom residences with non-strata duplex status at 40 & 42 Government, or a generous single-family home with potential for 3 bedrooms (one currently a sitting room) plus a studio/flex space, or 4 bedrooms by repurposing the upper kitchen. Ideal for rental income, multigenerational living or one big, beautiful home - so many options! Original fir floors, graceful staircase, spacious light-filled rooms & enclosed sunroom preserve its enduring character. Substantial improvements include beautiful new main-floor kitchen & bath, 2018 roof, heat pump, on-demand hot water & attic vermiculite removal & EV charger in driveway! A peaceful back garden enhances the 5,600 sqft lot, while 1,368 sqft of unfinished basement provides storage & utility space. Beacon Hill Park, Ogden Point & the Inner Harbour are just a short stroll away. This isn't just a home, it's a lifestyle!