Newly offered at $2,498,888. This home has major income flexibility. The main residence has 4 bedrooms and a private backyard. This Historic Hill home is in a sought after summer season rental area as well as War College in the academic year. The second residence is a modern two bedroom penthouse with a private patio and coded door for private access with a third floor balcony enjoying a view of the Pell Bridge. The high vaulted ceiling catch light filled space beautifully. This unit was vetted by Stay Newport as a very desirable summer rental. Owners can choose to enjoy either space while earning a tidy income in the other space. There are houses to be admired, and houses made for living. 16 Sherman Street is decidedly both. This handsome 1856 Italianate in Newport's Historic Hill offers approximately 3,600 square feet, six bedrooms, three full baths and gracious spaces made for gathering. Brick patios and mature landscaping create a private garden for long lunches and summer evenings, while the third-floor balcony offers western views toward the Pell Bridge. The legal two-residence configuration provides exceptional flexibility. Recent improvements include a new roof, updated electrical systems, engineered foundation reinforcement and extensive landscaping. Two off-street parking spaces and EV charging add convenience. From this in-town location, Bellevue Avenue, the harbor, Thames Street, restaurants and shops are within easy reach.