We just stayed at the Reef House + Sea Turtle (the small room downstairs) and it was fantastic! First, the Reef House is lovely. It was clean, cool and had everything we needed. We were just a short bike ride or a little bit of a hike to the grocery. We enjoyed the large porches and the music from the bar next door (which stopped at 8 pm so don't worry they weren't partying all night). We had 2 small kids with us and they had a good time too.
The Sea Turtle served it's purpose for us, but could use a little work. There were some missing or severely water damaged ceiling tiles and the bathroom door only partially opens. But this wouldn't keep me from booking it again.
The house is a bit further away from things than I'd like if I came again. It was about a 20 min walk back to the main area where the restaurants, shops and things are located. Again there are bikes so that isn't that bad with a bike, but that wasn't an option for us (we had a 9 month old, 4 year old and a 77 year old with us). I'd recommend this place to anyone visiting Caye Caulker.