You simply cannot beat this hotel for location, price and attractiveness. For $40/night our family of three spent a very comfortable night in this colorful, cheerful place, where the staff were very obliging and friendly. They even have free wi-fi in the lobby. Nothing fancy here (we had to share a bathroom), but I imagine you would be hard pressed to find a better deal in town.
Tip: if you stay here, have the $4 breakfast at La Equinita down the street.