Discover a truly unique and versatile property in historic Old Fair Oaks Village! Originally built as a single-family home, this 1,749-square-foot residence is currently configured as two separate living spaces, offering an ideal arrangement for multigenerational living, extended family, guests, a private home office or supplemental rental income. The home may also offer the opportunity to be converted back into one spacious single-family residence, subject to applicable approvals. The beautifully renovated upper residence features two bedrooms, one bathroom and 817 square feet. It has been completely remodeled down to the studs and includes a new 200-amp electrical panel. The 932-square-foot lower residence offers two bedrooms, a versatile bonus room, a large walk-in closet and a pantry, new upgraded electric panel, with wonderful potential to update and personalize. Current combined rents total $4,550 per month, providing buyers with immediate income possibilities. The property was appraised at $710,000 in April 2026, prior to completion of the recent engineered foundation reinforcement. The roof is approximately five years old. Set on a private .36-acre lot with potential space for an ADU, subject to Sacramento County approval, this special property offers flexibility, privacy and room to create something truly exceptional. Ideally located just one block from American River Parkway bike-trail access and the Fair Oaks Bridge, with the newly completed Fair Oaks Village Park and Community Center nearby. Smallwood Lane was named after the home's original early-1900s builder, adding a charming connection to Fair Oaks history.Built more than a century ago, the home retains wonderful period character, including original interior woodwork and the lower ceiling heights typical of its era. The structure also has a pronounced, visibly out-of-level condition, including sloped floors and angled door frames. Engineered foundation reinforcement has been completed, inspected and signed off by Sacramento County, with no additional work required under the approved permit. Buyers who wish to further straighten and level the home may elect to do so; a contractor's bid is available for review. Appraisal and supporting documentation are available for review.