Nestled along scenic Flat Mountain Road, just 3 miles from downtown Highlands, this enchanting 1945 cottage captures the charm of old Highlands while offering modern comfort. Fully renovated in 2020, the home seamlessly blends timeless character with thoughtful upgrades. One of its most extraordinary features is the custom water feature. Cascading waterfalls flow through a meandering stream into a tranquil pond, all supported by a large concealed underground cistern that serves as the primary reservoir and maintains a consistent water level while continuously recirculating the water that enhances the property's peaceful mountain setting. The inviting living room features exposed beamed ceilings, warm hard wood floors, and a natural stone gas fireplace. The beautifully updated kitchen includes custom cabinetry, a copper farmhouse sink, antique Honduran mahogany countertops, and a convenient adjacent laundry area. The spacious primary suite offers vaulted ceilings, distinctive leather flooring, and a king bed, opening to a private bath with double vanity and a sleek tile-and-glass shower. Two additional bedrooms, located on the opposite side of the home for privacy, share an updated Jack-and-Jill bath with an antique vanity and copper sink. One bedroom includes a queen bed, while the other features a queen Murphy bed and antique desk. Set on nearly one acre, the outdoor spaces create a true mountain retreat. A rocking-chair front porch overlooks a charming fountain, while the rear screened porch enjoys views of the beautifully landscaped backyard, fire pit, barn, and chicken coop. A winding path leads to a whimsical shed and hidden cellar. Evenings are best spent around the fire pit, surrounded by the soothing sounds of the cascading waterfalls and gently flowing stream that feed the pond beside the barn. The barn itself offers endless enjoyment-from basketball to games and a loft retreat with a TV and premium Tornado foosball table. Professionally landscaped grounds and mature trees further enhance the property's exceptional beauty. Offered fully furnished and turnkey, the home includes a stocked kitchen, outdoor grill, washer and dryer, Level 2 EV charger, and multiple smart TVs. The crawlspace has just been fully encapsulated. With minimal steps, excellent cell service, and a state-maintained road, accessibility is effortless. A proven rental history with no rental restrictions makes this a rare and compelling Highlands offering.