On the outer edge of town, but an easy walk, bus or taxi into the centre. The house/cabin itself is surprisingly large (perhaps more than the photos indicate), with all the facilities you could need, including 3 beds for groups travelling. Very helpful and welcoming hosts.
One note, though not a problem specific to this accommodation is, as with all of Latin America, the large number of dogs barking throughout the night in the neighbourhood, so bring earplugs.
Overall, a very pleasant stay, and an accommodation I would use again.