Photo: Fire Sale: A local contractor rebuilt this Del Rey Oaks foreclosure into a spacious five bedroom family home.

When fire damaged a small Del Rey Oaks home and the bank foreclosed on the property, contractor Paulo Silva saw opportunity. In 1996, Silva purchased the badly damaged home, put in new heating, plumbing, and wiring and added 2900 square feet and a second story to it.

"When we bought it, nothing worked, no water, no electrical," he recalls. "The entire back wall of the kitchen was completely destroyed."

Now the house, which is on a quiet street by a park, has large open rooms and two levels. Silva invested in large retaining walls that surround the property and provide spaces for roses and bougainvillea. Double doors lead into the marble entryway that has a special closet Silva designed to tuck shoes away and keep the area clutter-free.

A 900-square-foot living room-the size of some Peninsula cottages-has Pergo floors and display niches and windows looking into the back garden. Next to the living room, French doors lead into a former bedroom, now used as an office. Behind the living room, a rear garden with a hot tub provides plenty of room for the Silva kids to play.

A large kitchen/dining area has wood cabinetry and its own marble fronted gas fireplace. Sloping windows tucked in the eaves under the slanted ceiling allow extra light without sacrificing privacy.

Behind the kitchen, three bedrooms and two bathrooms are shared by the Silva''s two kids. The middle bedroom is used as a playroom by the Silva''s five-year-old daughter.

Practicality abounds: an oversized garage has a work area and room to park a boat or an RV.

But it''s the upstairs that brings a big grin to Silva''s face. A hardwood staircase and a wrought iron railing lead to a private master suite, complete with its own living area for watching TV and reading. A giant sun-filled deck leads off the master suite.

"This is my best place," Silva says, standing on the deck and looking at the park at the end of the block.

In the master bedroom, another gas fireplace is tucked into the wall opposite the bed. A large walk in closet leads into the peach-hued marble tiled bathroom, with double sinks and a triangular Jacuzzi tub.

But it''s not just the grownups that have their own hideaway: on the basement level, Silva created a rec room for TV watching and a large laundry and storage area. On the same level, a separate apartment, with a full kitchen and bathroom, plus its own gated parking area and outside access offers the option of a rental unit or an in-law space. The area is so spacious that Silva''s wife operates a child care center out of it.

The Silvas, natives of Brazil, are returning to their homeland to be closer to family, although Silva will still operate his business in Monterey County.

"We miss our family," Silva admits. "But this has been a great house. It''s big, in a quiet neighborhood, and in the sun belt. When I bought it, it was just four walls, just a shell."

Price: $850,000. 820 Adair Pl., Del Rey Oaks. Contact Charles Aronson of RE/MAX Monterey Peninsula at 625-3535.