Wallace Cottage is a well-known STR near Welches, tucked away on a quiet dead-end street in the heart of Mt. Hood recreation. After the current owners refurbished the cabin, the result is a classic mountain getaway with modern comfort and outstanding versatility. Step onto the covered front deck with log railings and supports overlooking the woods and seasonal creek. Inside, warm wood floors, wood walls, and a charming stone fireplace with wood stove create the authentic cabin atmosphere second-home buyers are searching for. Two upstairs bedrooms with skylights, an updated bathroom, utility room, and functional kitchen make the home comfortable for full-time use, weekend escapes, or STR guests.The property offers far more than just the original cabin. Just outside the back door is “The Little House,” a fun bonus retreat complete with built-in bunks and power — ideal for kids, guests, or overflow sleeping space.A major highlight is the incredible 875 SF four-car garage and workshop with room for all your mountain gear, vehicles, bikes, kayaks, skis, and recreational toys. There are ten foot doors on both ends of the garage plus an outlet for EV charger too. Above and beyond that is a newer 550 SF flex space featuring a full bath, wet bar, wood stove, skylights, and private bird’s eye view deck. Perfect for a media room, game room, home office, or hobby space.This versatile property fits today’s Mt. Hood lifestyle perfectly — ideal as a second home, recreational basecamp, or STR investment with income potential and exceptional storage flexibility.Enjoy the privacy and quiet setting with the sounds of the Sandy River just a block away. Restaurants, pubs, golf, hiking, skiing, and mountain recreation are all nearby, while Portland remains an easy drive for weekend escapes. Buyers looking for a true Mt. Hood retreat with flexibility, character, and recreational appeal should not miss this opportunity.