Shephali: So when are you driving down to Monterey so we can take a tour of a few homes along Del Monte Beach Area?? There are several answers to your real estate dreams. It would be my pleasure to assist you!
Linda Shepard, REALTOR(R) Keller Williams Realty

Although it's not in the city of Monterey, you might enjoy an area called "Monterey Dunes". This is an area on the Monterey Bay that very few people know about. The townhouses are right on the beach. If you enjoy waking up and beach combing to your heart's content, this is the place for you. It's isolated without any commercialization. I love to give tours of that area, so let me know if you are looking for something a little different and a little less civilized.

There are properties with your answers available. Have you found anything yet?
Taking a drive and seeing the different neighborhoods is your best answer,
then decide exactly what would suite your liking and needs.
Best Regards, Linda Shepard, REALTOR(R) http://www.RealEstateLinda.com

Shephali, of the 3 homes I mentioned, 2 are at Del Monte Beach (one's a condominium) and the other is in Pacific Grove. All are ocean front, not 1 or 3 blocks up. Maureen is right, you should take a trip and view some of these homes, and definitely with an agent who knows the area and the inventory.

Since Chapman's Monterey location is down at Fisherman's Wharf in Monterey, any home along the water in Monterey will be walking distance in 20 minutes. That said, the only neighborhood in Monterey which is beach front is a small little community of 7 streets called the Del Monte Beach neighborhood. I'm not exactly sure what Curt's referencing below, but there is a home there which just had a price reduction last week. It's up one block from the water and is priced at $1050000. There's also a new listing for $625,000 which is 3 blocks up from the water. However, If you only want unblockable views and remodeled or new condition then the price point is in excess of 2.2m.
You may want to come down from Fremont and look around a bit at that neighborhood with a Monterey Peninsula agent. I'd be happy to assist you as I've been representing buyers here for 20+ years.
Warm regards,
Maureen Mason

Shephali, Curt Abramson from Bailey Properties here. There are only 3 homes or condos that meet your criteria on the market right now, ranging in price from $1.5 to $3.0 million. If you'd like me to e-mail those listings to you, please contact me via my website, noted below, or call me at 831-251-4718.