Discover a rare opportunity nestled in the heart of the Catskills, at the base of Kaaterskill Clove, in the charming hamlet of Palenville. This distinctive property offers endless possibilities, featuring a beautifully converted church rectory hall consisting of 3 bedrooms/2bath and an adjoining main house with 3 bedrooms/1.5 bath awaiting your personal touch. The crown jewel of this property is the historic rectory hall, meticulously transformed into living space while preserving its original charm. Step into an expansive open-concept layout where history meets modern living, -complete with radiant heat flooring, stainless steel appliances, copper details, and a luxurious Brazilian walnut shower space. Original details abound, including sizable exposed beams, soaring ceiling height, intricate wainscoting, and a deep clawfoot bath. Oversized leaded glass windows flood the space with natural light making it an ideal setting for a creative studio, event space, or a unique residence. The adjoining main house is full of potential, serving as a blank canvas for your vision and creativity. Imagine transforming this space into your dream home, short term rental business, or a combination of both. The main house can be accessed directly through the rectory hall, or also offers multiple private entryways with a secondary paved parking area. The outdoor features are just as impressive with striking rock outcroppings providing a terraced back yard setting with seasonal mountain views of the Catskills. The 18' heated pool is perfect for summer relaxation amidst the blue stone patio area. Additionally, there is a heated pool house steps away, currently being utilized as a music studio, offering even more possibilities for creative endeavors. Furthermore, a 24x12 shed with metal roof provides ample storage for all your outdoor adventuring gear. Situated on 1.6 acres, this property is within easy walking distance to infamous State Land hiking trails, the Kaaterskill Creek, fabulous eateries, a wine shop, post office, and convenience store. Whether you envision a cozy mountain retreat with room for all, a thriving business, or a blend of both, this property offers the ideal location to bring your dreams to life while preserving a slice of Catskill Mountain history.